My friend says his SIL sold her Poway home in 1 day. people are still buying and selling homes every day. However, the prices are dropping. The SIL sold for about 15% less than one year ago. The values are dropping because demand is falling and supply is rising.
Months inventory = 10, meaning that it will take 10 months for all homes currently on the market to sell, and this is a very high number. It means that every seller has a 10% chance of selling, and that only 1 out of 10 homes will sell in any given month. This high supply/low demand puts downward pressure on prices. As long as months inventory is over 6, prices fall.
However, even in a falling market, homes are bought and sold every day. We are selling over 2000 homes every month.
So the home sold quickly because it was either in a very desireable area, or it was priced well. How much was that home worth last year?
There is a tendency for a pickup in sales this time of year, even though the fall/winter are the slowest time. This is all in my graphs which I will have on my website. I have to interview some realtors to understand why this occurs.
