Riverside and Corona CA Home Inventory Analysis for January 2015
As real estate professionals. we have been told over the years that we are either in a buyer's market or a seller's market. But through analysis of actual inventory, we have learned that depending price, affordability and availability determine the type of market. And we have determined that we can be in multiple market conditions at the same time, depending on price category. In other words, as you can see in the above chart, homes under $300,000 have a very low inventory - of only one to two and a half months. This indicates a sellers market. What specifically are we talking about with "months of inventory"? This is how long it would take on an average to sell the existing active listings if no additional new listings came on the market.
In the same market, the current listings priced $700,000 and above will take much longer to sell - thus constituting a buyer's market. A buyer's market means that homes aren't selling as quickly; because there are more houses for sale than there are willing and able buyers - thus putting pressure on the market (sellers) to bring down the prices.
Conversely, in a seller's market, there are more buyers than there are available homes for sale - thus often causing prices to increase. In a balanced market, it means that the demand for houses is equal to the number of willing and able buyers. In that market, there is generally no increase or decrease in home values.
The numbers above are only a snapshot of one month and do not indicate any long term trends or market movements. We'll post the updated numbers monthly. As we add to the data every month, we should be able to see trends in the residential real estate activity and where the bulk of the sales are happening.