As in recent months, the supply of San Diego homes for sale in August continued to be quite low compared to the number of people buying homes.

I typically show a chart measuring the number of months’ worth of inventory — available inventory divided by the number of sales in a given month. This time, let’s break that figure down into its components.

Sales activity was down for the month of August, but this next graph shows that this is a typical seasonal pattern. Home sales in August were up about 6 percent from a year prior.

Now look at the amount of housing inventory for sale. While the pace of sales changed only mildly from a year ago, inventory has plummeted 30 percent over the same period.

Supply and demand combined to keep months-of-inventory near the unusually modest levels of recent months.

Shadow inventory may or may not be waiting in the wings (we’ll check up on foreclosures next), but for now there just isn’t a whole lot of housing to choose from in San Diego.

— RICH TOSCANO

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