Steve Grizoffi: So, what’s going on with the south Placer County real estate market right here in Northern California? Hey, guys. Steve Grizoffi here, broker and owner of Realty by Design. Just wanted to take a quick minute and shoot a quick video here, and give you some information about kind of what’s going on here at the beginning of the year in 2020. We’re going to start that talk by talking about inventory.
Generally speaking, inventory has to do with how many homes are for sale in a given area. Right? But the inventory is actually measured in the number of months of inventory in any given area. There’s a second very important factor here, and it has to do with how fast homes are being purchased and absorbed off of the market.
Let’s give an example here. Let’s say in a given area there are 500 homes for sale, and in a month’s period of time, 100 of them is purchased. That would be … that area at that point would have a five month inventory rating. And by the way, let’s see … The experts say that if your inventory is between five and six months, then it’s kind of a neutral market. If it’s below five months, it starts becoming a seller’s market. And if it’s over that five to six months of inventory, it becomes a buyer’s market. So, where were we at in the month of December? That’s the latest data we have. We were at 1.4 months of inventory. Yeah, that’s right. Just 1.4 months of inventory. That is a sign that we’re in a very strong seller’s market still.
Well, I know we’ve just touched the tip of the iceberg when we’re trying to figure out how to evaluate a real estate market here, and we’re talking about inventory. But I will be following up with other aspects to look at when you’re considering such things, and looking at a real estate market and trying to figure out what’s going on here. I hope this has been a value to you. If you’re interested in finding out more about what’s going on with our local market here, or if you have any other real estate needs or concerns, feel free to reach out to me. I look forward to speaking with you. Again, Steve Grizoffi, broker and of Realty by Design, where we take pride in building a custom plan for all of our customers to make sure they know where they’re going. Have an awesome day.