Calif Home Inventory

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California’s “Unsold Inventory Index” (UII), a closely watched index indicating the number of months needed todeplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.

In December, the median price of an existing, single-family home rose to $306,820, an 8.4% rise from Dec.’08, the second consecutive year-over-year increase, and the 10th  straight month-over-month increase, according to C.A.R.’s December sales and price report.

 With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.

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