Archive for April, 2010

Shrinking Inventory in Vallejo and Solano County!

Have you noticed the shrinking inventory in your local real estate market??

I sure have.  Since 2007 peak in inventory, I have been noticing the inventory in Vallejo shrinking from approximately 1,500 homes to the current level around 425 homes!   In the last 6 months the Vallejo inventory has been shrinking at the approximate rate of 75 homes per month net. 

If this rate continues, Vallejo will run  out of homes for sale in about 5 months!  Of course this can’t happen… so prices will have to increase as inventory gets scarce.  As prices increase, sales will slow down until we are in balance with the Law of Supply and Demand. 

I have noticed a similar phenomenon of shrinking inventory occurring in nearby cities and counties as well. 

There are of course many variables that can effect the inventory.  For now, we are on a trend for a tight inventory and price changes to follow.   If this trend continues… then  your opportunity for good pricing and diverse choices for a home will greatly be affected. 

Is this happening in your local area? 

The answer is yes, for Vallejo and most of Solano County!