patrick.net

If the market is as hot as you say it is, all the more reason NOT to participate in it.

Patrick, business idea, set up a site where the Realtors can go and bang their drums.

You can call it 'Patrick Fox' lol

I'm not saying it's legitimate or that it will last, but the numbers are what they are.

My prediction is the next time we see a headline like above, it will really be on fire. Literally.

What about numbers of homes available for sale in 2005 and now? Same dynamics?

zhanka says

What about numbers of homes available for sale in 2005 and now? Same dynamics?

This comment was in response to:

It's not that sales are through-the-roof, but they certainly are very high compared with the number of properties for sale. The Supply/Demand balance is looking like 2005.

zhanka says

What about numbers of homes available for sale in 2005 and now? Same dynamics?

There was more inventory, but also more sales. The ratios were similar.

gregpfielding says

There was more inventory

Exactly, thats was my point, more inventory, more people were willing to sell and more people were more confident to buy than right now.

Population in California is increasing by 1% every year

Even considering cal. population is increasing by 1% every year, it does not justify such a low inventory, obviously the inventory shortage due to the others reasons.

... and once more we have an argument between the house investors who will naturally always project housing as the best thing ever since their financial futures count on it and the home buyers or would be buyers who want prices to fall dramatically and perhaps unrealistically.

Both will be disappointed.

Anyway, there's nothing amazing going on here. There is less supply. Thus less supply means more demand and more demand means more sales per capita.

Secondly, yes- the population of California is increasing. But its also losing population as well as the middle class moves out and more working class moves in, thus if that's the case that would actually indicate future home value declines.