**2371 homes available for sale in July 2013 vs 2019 in June 2013 (up 17.4%) and 1686 in July 2012 (homes for sale up 40.6% year over year).
**1559 pending sales closed escrow in July 2013 , vs 1510 from June 2013 (up 3.2%) and 1661 in July 2012 (down 6.1%).
**Average days on market for July 2013 were 26, vs 23 for June 2013, and 60 for August 2012.
**Months of inventory – 1.5 months of inventory in July 2013 vs 1.3 in June 2013 (up 15.4%) and 1.0 in July 2012 (up 50%).
**930 homes available for sale in July 2013 vs 795 in June 2013 (up 17%) and 784 in July 2012 (up 18.6% year over year).
**565 pending sales closed escrow in July 2013 vs June 2013 of 578 (down 2.2%) and July 2012 of 507 (up 11.4%).
**Average days on market for July 2013 were 28 vs 30 for June 2013 and 61 for August 2012.
**Months of Inventory – 1.6 in July 2013 vs 1.4 June 2013 (up 14.3%), and 1.5 in July 2012 (up 6.7%).
WHAT DOES THIS MEAN? Inventory of available homes is up substantially as more sellers are able to now sell and avoid a short sale or foreclosure. However, many of these new listings are overpriced in the market which will trend to longer days on market. Sellers (and some real estate agents for that matter) have not recognized that the market has experienced a shift starting in June of this year. With prices increasing every month through the first half of the year, it did not take long for the market to catch up to an overpriced listing. This is no longer the case.
However, demand still outpaces supply and homes priced correctly in the market and that lack any substantial flaws will sell in a reasonable period of time. 3-6 months of inventory is considered to be a “normal market” where supply and demand are in equilibrium. Remember that closed escrows in any given month became pending sales (in most cases) 30-60 days prior. July closing statistics include homes that became pending sales in May and June. Average days on the market is trending higher as more homes are listed on the market for prices not supported by demand. The summer months are typically slower sales months as people take vacations and prepare to get their kids back in school. Some of these statistics are likely attributable to the seasonal summer slowdown. Activity in September and October of this year will help us understand how much of the market shift will continue and how much was merely affected by seasonal factors.
Frequently we see conflicting reports in the news about the real estate market. Part of that may be due to the area being reported on; national, state or local. I just read a article stating that California home sales were the highest in July since May 2012. I would expect this given that we have seen increased inventory in the market over the last few months. The buyers in the market who have not been able to purchase a home until now are finally getting a break with more homes on the market and prices stabilizing.
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