The inventory of homes for sale in California dropped sharply in October as the pace of sales picked up, a report said Tuesday. The California Association of Realtors Unsold Inventory Index for existing, single-family detached homes in October 2008 was 5.9 months, compared with 15.2 months for the same period a year ago.

The California market is a big influence on Hawaii’s market, as a large number of buyers are typically from California.  A positive sign in the California market will eventually translate into a positive effect in the Hawaii market.