Well, it looks like some of what the media has been saying is coming to fruition. Now whether they had a direct effect on this happening is up for debate, but what is not debatable is the current state of the market.
It is no secret we have had a steep decline in buyer activity and prices - but just how bad has it become?
Here are the raw numbers and what they mean.
First we will look at Single Family Residences for all of Fullerton.
As we can see inventory is continuing to rise and the number of actual sales continue to decline. If we had no more homes come on the market and sold homes at the pace of 24 per month (the number that sold in October) it would take about 20 months to sell everything. WOW!!! Given simple economics of Supply and Demand - we have not seen the bottom or anywhere close to it.
Although we do have an uptick in pending sales - as we all know not everything is closing and buyers are asking for more and more concessions which is their right. They had no bargaining power in 2004 and 2005 - now it is their turn.
Condos are the same story.
Inventory is holding steady and the reason is people taking their homes off the market. Sales are decreasing ant their is currently 14 months of inventory. Prices have declined about 20% off the highest and best price they could obtain in the last market cycle.
If you are a buyer - you are in control. Seller's hang on if you do not need to sell - and if you must - do it quickly and avoid chasing a declining market.
