I just did a spot check on inventory levels for some cities that were pretty high when I did the May 1st report. Not much has changed. All but one of the cities I checked were either at the same level or higher. San Luis Obispo, which was at its highest level in 4 years at the beginning of the month, added a few more.
This is good news for Buyers but not good news for Sellers. There are always some in-demand properties that are the exceptions but the law of Supply and Demand takes over at some point and will push prices lower if there is too much inventory and few Buyers for a particular type of home.
There’s a property I drive by that has had significant price drops over the last few months. The listing agent added a “Priced to Sell” sign when the last price drop happened but that was a month ago. I guess it really wasn’t Priced to Sell in this market. I chuckle every time I pass this sign. Aren’t all homes on the market priced to sell? Have you ever seen a “Priced to Sit” sign on a house?
I’ll be updating the inventory report in 6 days to see where we are at.