Alameda Inventory Continues to Fall

The interesting trend of falling inventory continues in Alameda as the number of units for sale fell to a 28-week low. Inventory for the Island was 150 units as of yesterday and much of the drop can be attributed to expired listings/withdrawn and condominium sales.

Part of the drop is the number of is not from sales with just 18 recorded so far for the month. The week, August 9-16, saw 14 properties listed on the MLS, so the drop of inventory is from the few sales and properties being pulled off the market.

Link to Larger Chart

August has seen a big run in the condominium market accounting for 50 percent of the sale. Nine of the 18 sales this month are condos a significant increase. The high for the year has been 10 condo sales in a month. For 2009 condos accounted for just 26 percent of the sales so it appears that a price bottom has been found for value shoppers.

The low inventory in a normal market creates demand. Basic economics: fewer homes in a desirable are drive up prices. But in this market I think it is stagnation, the homes that are sitting are sitting because there are no buyers. Fear of jobs, a tough Jumbo Loan market and lack of inventory has not brought buyers to the market.

It appears that sales continue to remain flat, an average of 30 per month, and will continue to remain in the same status until something significant changes.

Inventory Data

. 8/16/2009 . Total 150 . 94501 120 . 94502 30 . SFR 98 . Condo 29 . Multi-Family 21 . Short Sale 15 . Foreclosure 9 . Price Reductions 60 . High List $1,987,000 . Low List $199,000 .