Two more graphs (20171 - Herndon/Oak Hill & 22124 Oakton) to add to the graphs below (Manassas & McLean). To make a long story short, I looked at the data every which way and there is no evidence of months of inventory predicting price direction.
Median home Prices (red line and left axis)
Months of Inventory (blue line and right axis)
2 comments:
if you look at Manassas you see a correlation of Price setting MOI, not MOI setting price.
as the price rises MOI starts to rise, as the price falls, MOI begins to fall. What that is showing is the Manassas market is beginning to get healthy.
The boom is crushing out there and people are
starting to hit price equilibrium.
Oakton hasn't yet hit that, people are holding out for high prices.
Too bad the data isn't available prior to 2005.
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