Good news! A recent article in Pacific Business News shows that California’s number of months of remaining inventory and the days on market have dropped significantly as compared with August 2007.  Is the bottom in view? Looks like it.  California is usually a good indicator of what will happen in Hawaii a few months later. (6 months to a year).

The unsold inventory index for existing, single-family homes in California during August dropped to 6.7 months from 10.6 months for the same period a year ago, according to a report Thursday by the California Association of Realtors.

The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

The Realtors’ organization said the median number of days it took to sell a single-family home was 47.3 days in August, compared with 54.7 days in August 2007.

The August report showed sales were up 56.7 percent statewide while the median home price fell 40.5 percent.

I have been saying for months, look for the number of sales to increase and inventory to deminish as a sign of an improving real estate market, esp. in the hardest hit areas. California typically sets the trend for Hawaii and was one of the hardest hit areas.