Looking at California housing inventory levels on this one. Just a quick refresher, six months of housing inventory creates a neutral or balanced market where both buyers and sellers are on equal footing and neither really has an advantage in negotiations. A seller’s market is one in which there is less than six month’s inventory, and a buyer’s market is one in which there is more than six month’s inventory. Rules of supply and demand apply. Less inventory means more demand and seller advantage. More inventory means less demand and buyer advantage.
We can see here that we are well below that magical six months of inventory, and only at a current inventory of 3.2 months, even less than last year. Further we can see that it’s been well over a decade since California has come anywhere near six months of housing inventory. This is great news for those of you that own a home and wish to sell it at some point.
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