Realty Time report: Inventory spiking, prices dropping

Overall demand for the year still looks good for around 40,000 homes sold, very respectful. The concern is the growing, almost by the day, inventory levels. Just since June we have added approximately 2,000 (17% growth) units to the inventory. For those that are selling in the $600,000 price range, you have the best inventory picture. The average Inventory Days are 125 days, but in the $600k range you are down to 50 days, not to bad. Other segments of the market explode over 200 days, there will be serious pricing problems here for the sellers that have to sell.

...Based on the decline in demand, the still increasing inventory and the dramatic shift in buyers, I am putting San Diego in a buyers market position

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