Inventory Levels Higher Across the Board
By Oscar Wei, senior research analyst

As home sales declined in the last two months after the expiration of the tax credit, inventory started building up slowly. The overall unsold inventory index for the statewide market increased in July 2010 noticeably from the same month last year, experiencing the largest yearly gain and the first double-digit year-to-year growth since March 2008. Inventory levels increased over time by price range as well. Since the tax credit had a bigger impact on first-time buyers - who purchased mostly entry-level homes priced under $500,000, unsold inventory index increased more significantly at the lower-priced tiers, as compared to the high-priced home sectors. However, when looking across price ranges, inventories were still lower at lower price ranges and highest in the highest price range.

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