Months of Inventory -- October 2009

Something that every buyer AND seller should know is the "months of inventory" in the current market. This information prevents a buyer from paying more than he needs to, and it guides a seller into pricing his home so that it will sell ... and for not less than it should.

We are talking about whether a geographical area is in a seller's market, a neutral market, or a buyer's market. As an example, here's how Long Beach stacked up this past October:

• Single family residences, all of Long Beach, no price limit: just barely a seller's market
• Single family residences, all of Long Beach, under $450,000: a stronger seller's market
• Condos, all of Long Beach, no price limit: just barely a neutral market
• Condos, all of Long Beach, under $400,000: just barely a seller's market

This information is available for all communities, not just Long Beach, it can be applied to any price range, and it can be geographically narrowed down to zip codes.