As forecasted in December http://travwhite.com/expect-big-gains-in-2016/ and reiterated in February http://travwhite.com/perfect-conditions/ the market has performed accordingly. Prices shot up as expected as described with the cup with handle formation that I mentioned back in December.
Surprisingly inventory has remained low. Where are all the sellers? This is a concern because we need volume to support the rise in prices.
What’s missing from this market advance?
As the market increases it shows a distinct lack in volume. This lack of power should not come as a surprise in light of this bull market’s age. While still positive in this market, continued subpar volume for more than a few quarters would turn this defensive. We are now in year 5 of this bull market that has increased the value of homes in Newport Beach by 40%.
The market clearly remains in a bull market and looks like it will continue to repeat the same seasonal pattern it has over the past three years. That is, prices rise between January to July and inventory remains low. July the market tops, builds its base, inventory increases, and days on market take longer. If you’re planning on selling don’t wait till summer and get caught in the slow season.