San Diego Housing Market News and Analysis
September 2012 Resale Housing Data Rodeo
Submitted by Rich Toscano on October 8, 2012 - 12:38pm
Inventory dropped again, prices rose again, and "The Chart" continues to do a bang-up job in indicating home price directionality...
Here's inventory, lest people thought last month's rise was the start of a new trend:
And prices continued to rise in a very orderly manner. We are not far from the mid-2010 post-crash peak at this point:
Here's The Chart. Blue line is months of inventory (inverted, to show the correlation better). Red line is monthly price change (annualized):
There is a strong correlation here, and I think the causality is clear... lower inventory pressures prices upward, and vice-versa, with the 6-month line marking the historical turning point between upward and downward pressure.
Months of inventory notched up a wee bit last month, but remained at very low levels. Thus, the upward price pressure appears poised to continue directly ahead.
More charts below...
~Active forum topics~
~SD Home Price Snapshot~
|* Investment advisory services and securities offered through Girard Securities, Inc., member FINRA and SIPC. Investment advisory services also offered through Crawford Capital Management, Inc. Pacific Capital Associates and Crawford Capital Management, Inc. are not affiliated with Girard Securities, Inc.|