[quote=Jazzman]I don’t think Redfin would be saying inventory is low if that isn’t the case. I followed inventory levels for awhile in a few soCal areas, and the lack of choice, especially quality homes was very evident. What’s interesting is three of the four “bubbly” cities are in CA, but I don’t agree with Redfin that’s due to an over correction. Las Vegas yes, but that is one of the least bubbly cities. I do agree with them that now it is not a good time to buy, but that things should improve. There’s never been any data to show where inventory levels are lowest, or in what price ranges, but my guess is many lower end homes are either still in foreclosure process, or have been bought by institutional investors. By contrast higher end homes are either still underwater, or sellers anticipate more appreciation and are holding out. Low interest rates are bringing in buyers, and low inventory is leading to frenzied buying behavior, which is where the similarities with the previous bubble are.[/quote]
In case this was in response to my comment….I didn’t suggest that inventories aren’t low. They are, though nationwide they’re higher now than they were a few months ago. The part I think may not be accurate is the claim that listings are very slow. I’m not sure that’s the case. If it was, sales of existing homes couldn’t be at the high level they’re at.
