Has the Market hit a Wall?

Published: July 2, 2014
Below is a chart showing the run up of new listings in San Diego County over the last month. We will be presenting this and other related inventory, sales and "days on market" charts over the next 30 days. Why are we doing this? Because it is our belief that the market may have hit a wall, with declining demand, increasing days on market, and spiking inventory. Deja vu ala 3rd quarter 2006?

So check out this 1st chart showing New Listings on the San Diego Multiple Listing service. As you can see, on a technical/moving average basis, we should see inventory decline again as it has over the past 4 inventory spikes. However, we believe that inventory may continue high and even spike higher. As a result, due to the law of supply and demand, prices may stall and even decline.