Secondly, it's being reported that, post-tax-credit, many parts of the country are seeing inventory levels jump to 12 months of inventory or higher. What does this mean? Basically, given the current stock of houses for sale and the current level of buyer activity, it will take over 12 months to sell all the inventory in those troubled markets. Six months of inventory is considered a healthy, neutral level of inventory to be at. In Cambridge, we've been doing better than average (See graph below): our inventory levels in July 2010 were at 4.3 months. The month before, June 2010, we were at 4.1. months, so the end of the tax credit clearly hasn't triggered stagnation in our market. In fact, ever since March, the beginning of our Spring market, our inventory has consistently hovered around 4 months.
These are just two ways that the situation in Cambridge differs dramatically from the doom and gloom reports making the rounds in the media over the last few days. ]]>
