This chart is dense by design. We show both the absolute number of active listings (Left Scale) and the months of inventory (Right Scale).
- This area has generally had below 6 months of Used inventory from 2003 though the first quarter of 2007.
- The New months of inventory began to climb in mid 2006. Our reporting service was showing “excess inventory” in late 2006.
- This area has not previously seen this level of absolute, or relative months, of Used inventory since 1999.
- New housing is impacted due to the high availability of Used resales, some of which are quite recently constructed.
- In the beginning of 2008 there were the same number of New and Used houses available on the market. Builders are competing with their own older product as resales.
- Some might take comfort that average sales prices or average sales prices per square foot have not declined. When discouraged sellers begin to lower their prices to clear inventory (as they must) this will change.
Let’s look further at the new housing picture (Part 3).