There is a dearth of inventory. February 1 showed an 27% increase over January 1 but January was so low, just 277 active listings of single-family homes and condos, that going lower would have been really unexpected and bad.
In January 09 there were 1,000 units on the market. The MLS shows inventory bouncing along and hitting a high of just under 2,000 units in November 2010. It quickly dropped to a 1,000 by January 2011. All during 2011 there was between 1,000 and 1,500. Then in January 2012 it dropped to 587. At the highest level of 2012 it was 763 in October.
Ancillary to the inventory is the absorption rate. The Absorption rate is the time, in months; it would take to sell the current inventory if sales continue at the previous monthâ€™s level. In November 2010 there was 4.1 months supply. In October 2012 it was 2.1 months.
Prices are rising across the country according to news reports. In the City weâ€™ve seen a 19.6% increase just in the last 12 months so one would assume that sellers would be primed to take advantage of buyer demand but we arenâ€™t seeing it.