Also, once a week I take a sample of data Simi Valley inventory levels, this week was the first week since August that the inventory didn't drop. If inventory stabilizes here and starts going back up for the Spring selling season it would represent a starting inventory equal to almost 50% of last year at this time. This represents an extra hurdle to the new selling season as it is already starting behind the eight ball somewhat in regards to supply and suggests that the real estate agents are having trouble finding market price.
I also highly recommend reading todays O.C. Register article regarding L.A. County versus Orange County housing markets. They have a great graphic representation of what is happening in the housing market by price range:
The high-end is compressing down onto the low-end and this will be THE trend to watch in the coming selling season. The "spread" between the high-end and low-end widened during the housing boom and now it is coming back together. When things are running hot people are willing to stretch their finances more, but as things cool down people stretch less and are willing to buy in the lower end areas in order not leverage themselves. Keep an eye on the monthly DataQuick zip code chart for more information.
And finally, head over to the Wall Street Examiner blog for a wealth of charts and data on the state of the new home housing market. There is such a wealth of data there it will take some time to digest, but it is worth it.
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