Homes for Sale Inventory Drops 37% while Sonoma Home Sales Rise 21% as of May 31, 2012
In May I posted a lot about Sonoma County homes sales statistics. Now it is June 1 and I was curious to see what the May sales figures had to say.
Last year at this time there were 3,043 homes for sale in Sonoma County.
As of May 31, 2012 there are only 1,902 (!) homes for sale here, a 37% drop in inventory.
Last year 434 homes sales were completed in the month of May.
This year, 524 home sales were completed, an increase of 21%. This supply and demand chart is one of the most telling for market statistics. As the supply curve drops it begins to converge with the demand curve, which has been steadily rising.
When the curve converges that means prices may rise.
I recently attended a gathering of about 200 realtors for a business planning conference in San Diego. The consensus there was that prices are coming up. Most analysts predict a modest increase of 3-5% nationwide. Prices seem to be rising in some of the hardest hit markets such as Las Vegas and Florida. Many Bay Area markets are sizzling hot and overbids are rampant.
The Sonoma County home sales numbers seem to confirm this trend. What do you think?