You’re right, and the agent is wrong – a 10 or 12 month supply of homes on the market is a lot different than saying houses are selling in 60 days. Maybe the agent means that if he priced a listing correctly, he would hope it sells in 60 days – but most aren’t.
There has been about 10 sales per month there on average, and there are 11 pendings that went into escrow so far in August. Maybe some will fall out – who knows.
PS –
I think it’s more accurate to use the average of the past 6 months if you’re trying to calculate the total months inventory in one zip code – the monthly figures for one zip code can jump up or down a lot from month to month, and I think the past six months have been equally slow in general.
If you’re calculating the months inventory for the whole County, you could use just the past months’ sales.
As much bad publicity as there has been in the media about the weak real estate market, it sometimes surprises me just how strong it can still be in some areas and price ranges.
I did an appraisal last week in the Gatewood Hills area of Rancho Bernardo – mostly 30 to 35 year old tract homes of 1800-2700 s.f. I researched the MLS for homes selling from $600,000 to $800,000, in about a half-mile radius of my subject property, and I found 15 active listings, 5 pending sales, and 25 closed sales in the past 6 months. To me, that is a fairly healthy market – price declines are not likely in that area and price range in the next several months.
