Absorption Rates: do they predict anything? Maybe not for San Francisco

I know that sounds crazy, but having just studied absorption rates for San Francisco single family homes over the last two years and compared them to median prices, I don't see a correlation. ie. Even when there is a lot of supply (inventory) in relation to demand (sales), it doesn't appear that prices soften.

For a full discussion of why this might be the case, see my blog and website at www.pegasusventures.net