CA Unsold Inventory Index Doubles
The California Association of Realtors has a report out that contains some surprises. "C.A.R. President Jim Hamilton: 'The inventory of homes for sale has increased compared to a year ago, which has lessened the upward pressure on home prices, but consumers’ perceptions that interest rates will increase continues to drive the market.'"
So while the fear of missing out pushes prices higher, the fundamentals continue to erode. "C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2005 was 2.7 months, compared with 1.3 months (revised) for the same period a year ago."
Unless everybody got a raise, affordability gets lower and lower. "The median price of an existing, single-family detached home in California during March 2005 was $495,400, a 15.7 percent increase over the revised $428,060 median for March 2004, and increased 5.2 percent compared with February’s revised $470,920 median price."
Check out the tables at the bottom of the page, especially the Santa Barbera areas, which showed a 22-38% drop off in sales.