San Diego County is still seeing a decline in the number of homes that are currently on inventory, falling to the lowest it’s been in almost three years. The decrease in home inventory indicates that individuals that would like to sell their properties are hesitant to do so or it’s not possible for them at the present time. Many homeowners throughout the state are underwater on their mortgages or are in the middle of a loan modification; both are viable reasons for being unable to sell your property.

Last month the housing inventory was almost 40% less than it was a year ago and almost 10% less than it was in February, with only 7400 active listings on the market. The current inventory is divided between active listings and contingent listings. A contingent listing is when a sale is waiting for final approval; short sale transactions are included in the contingent listings. A short sale is when the lender allows the homeowner to sell the property for less than what it’s worth. This is often a popular alternative to foreclosures. Short sale transactions peaked in January, comprising almost 24% of all resales.

One thing that could be driving the number of homes on the market downward is the decrease in home prices. Many are hoping that this decrease in inventory will create a competition for homes and will cause values to increase. People looking to purchase investment properties are still dominating the housing market because they are purchasing with cash. While most sellers would prefer to have a traditional buyer for their home, when an investor comes in with a cash offer, it’s often times hard to pass up. Many realtors in San Diego County feel as if the market is currently at a stalemate because both buyers and sellers are hesitant to enter into the market.