Prices are Rising...and So Is Inventory

The June sales report from CAR (California Association of REALTORS®) came out on Monday. It basically said that continued low interest rates along with an increase in invontory is fueling the market.

Some snippets

The median price of an existing home in California in June increased 16 percent
and sales increased 3.6 percent compared with the same period a year ago

“Inventory levels in recent months were nearly double that of a year ago,” said
C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
“This has contributed to the increased pace of home sales in the presence of
continued strong demand for housing in California.”

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in
June 2005 was 2.7 months, compared with 1.7 months (revised) for the same period
a year ago.

Thanks to the Housing Bubble 2 blog for the link to the article. If you're interested in the subject, I'd recommend adding this one to your blogroll.