Supply Shortage Intensifies Market Competition

While the California housing market continued to show
strong sales growth since early 2012, the lack of
inventory remained an issue throughout the year. In
October, the California Association of REALTORS®
(C.A.R.) reported a supply of inventory at 3.1 months,
which was less than half of the norm of about seven
months, and was at the lowest level since Aug 2005.
The shortage of supply was across the board, but the
decline was especially pronounced for distressed
properties, as short sales inventory and bank-owned
(REO) inventory declined from last October by 42
percent and 58 percent respectively, while equity
sales decreased 15 percent from last year. Read More