WHAT KIND OF MARKET ARE WE IN?

An updated version of this chart can be found using the 

"WHAT KIND OF MARKET ARE WE IN?" tab above.  

It will be updated at the end of each month. 

  

Note that the Statistical Analysis Module (SAM) 

(found in the "UP-TO-DATE STATS FOR SCCL" TAB)

uses the following metric for Months Supply:

The inventory of homes for sale at the end of a given month, 

divided by the average monthly Pending Sales from the last 12 months. 

This is known as the absorption rate. 

My personal preference is to divide the inventory of homes for sale at the end of a given month by the number of homes that went under contract (Pending Sales) in that month. 

I believe this gives a better picture of what is happening right now.

This is what was used in the SCCL MARKET UPDATE charts. 

 

Note that just a couple of additional homes going Under Contract can change the months supply significantly, as two variables are changing.  As the number of listings that go UNDER CONTACT goes up, the number of ACTIVE listings goes down by the same number.