October MLS Stats Show Continued Inventory Decline

Westcoe Realtors, Riverside California…The latest Multiple Listing Data for the Riverside area as of today, October 1 shows a continued decline in the number of properties for sale.  For the 11th straight month, the number of properties listed for sale has declined, from a high of 2,895 in November of 2008 to today’s level of 983.  This new figure represents a drop of 7% from just last month, and an overall drop of 66% since this decline started.

The reason for this drop has been well reported in the media and this blog…moratoriums, law changes, and government restrictions are but a few of the reasons there is such a sparse amount of inventory.  Ironically, there are thousands of foreclosures in our Inland Empire area that are at some point in the foreclosure pipeline, but until they are released to the market (and when and how they will be released is the magic question….no one knows at this point), buyers are left to fight over a far smaller inventory than normal.

This intense competition for the few available properties has led to a frenzied market for buyers, where 15-25 offers are the norm for many bank owned properties.  The demand for housing in our area is at an incredible high, due to the lower prices, historically low interest rates, and Federal and State tax credits.  When this limited supply is matched with overwhelming demand, the resulting chaos is intense, and for many buyers, frustration with the process rules the day.  Hopefully, the vast number of bank repos yet to appear on the horizon will arrive soon, but there is no assurance of that happening.  Therefore, until the banks decide on when and how to release all the properties they now own, the buying public (and real estate professionals as well) will simply have to accept the frustrations that come with huge demand and limited supply.