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...
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