A sign that the bottom of the market has been reached

The other day, I was doing some research for buyer clients of mine on the state of the market for a property that they were considering putting an offer in on. This property was new construction in a generally sought after area of East Cobb (Marietta, GA). The home was listed in the 900's. As part of my research, I analyzed the trends in inventory levels in my local absorption reports. Interestingly, I noticed that the months of inventory has actually declined in recent months in that category and area. It peaked in February 2008. See the stats below.

8/07 - 18.9 months of inventory

9/07 - 20.3 months

10/07 - 20.5 months

11/07 - 21.2 months

12/07 - 24 months

1/08 - 24.4 months

2/08 - 31.1 months - - - - -This is where it seems to have bottomed out and the trend reversed.

3/08 - 29.3 months

4/08 - 28.8 months