Question:
“I’ve been tracking San Diego housing inventory to decide when the right time is to buy a home. Inventory is up 14% from last month but only 3% year over year, and…”
Answer:
Hold on a second.
My money says you’re either an engineer or a computer programmer. Which is it?
I say that because A) you sound smart and B) you’re over-analyzing this. So take it as a compliment—at least the first part.
Anyway, yes, housing inventory stats have some use. However, the problem is there are no “buyer inventory” stats.
In other words, housing inventory tells you the supply, but not the demand. So you’re only seeing half the story.
And there are all kinds of other stats you can bury your head in, like absorption rate, median price changes, # of home sales, time on market, interest rates, etc. These will all tell you SOMETHING.
But the best thing to do – be it instead or in addition – is to seek the advice of a good agent who’s in the trenches, living and breathing real estate.
