The chart above shows us how many homes are for sale compared to how many homes sold in each month over the past 12 months. We are able to derive the state of the market as a buyer’s or seller’s market, and the amount of activity that’s taking place in the Pacific Grove Real Estate market. We can also determine when the most sales activity is taking place and the direction that the market activity is headed.
One indication of a neutral real estate market is having 6 months of inventory. More than 6 months of inventory is an indicator of a buyer’s market and less than 6 months is an indicator of a seller’s market. The number of months of inventory can be determined by taking the average number of homes selling per month and dividing that amount by the number of properties currently for sale. In this instance, there are about 12 months of inventory.
We see a spike in sales in June and August, with July following closely. We are now in a downward trend, moving into the end of the year which is traditionally slower for home sales.
El Dorado Realty Company 