The Months of Inventory (MOI) calculations I did at the first of the month showed that we’re getting close to the “neutral market” indicator of 6 months of inventory. As of November 1st, the MOI for SLO County was down to 7.6 months. This was a drop from 10.8 months on October 1st. see here – http://www.slowatch.com/inventory.htm This is way down from the 14.5 months of inventory we had last November.
Before anyone gets too excited, MOI is just one of the indicators I look at to gauge where the local housing market is at. One of the reasons the MOI has lowered is because inventory has dropped. And one of the reasons that inventory has dropped is that the number of new listings coming on the market has slowed. I believe that a lot of homeowners that are not in a hurry to sell are waiting for indications that the market has bottomed out.
There are other encouraging signs. Days on Market (DOM) for SLO County homes decreased in October as well, almost going below the 100 day level for the first time in 2 years.
If you look at the MLS chart on the SloWatch.com homepage, you’ll see that price changes have been pretty steady at around 1000 per month for most of this year. We didn’t have the spikes to 1400+ per month as we’ve seen in the previous 2 years.
While we are still seeing the effect of foreclosures (some cities being impacted more than others), it does feel like things have settled down. Since the election, we’ve seen increased activity on our website and an increased number of qualified Buyers that have contacted us over the past several days.
Since we’re getting close to the holiday season, it will be interesting to see how the market does in November and December. If inventory continues to decline, then I believe we’ll see a better start to the new year than we have in previous years. We’re already starting to see some types of homes absent from the current inventory which is great news for homeowners that are thinking about selling.