Inventory Part One

Sunday, I "previewed" a property in Harvard Heights, a two-story Craftsman North of Venice, not yet included in the multiple listing service, but coming soon.

The listing agent, from Huntington Park, vaguely aware of the idiosyncracies of the West Adams market, courted my opinion.

"It's grossly over-priced", I offered finally without the appropriate restraint.
"But there's comps", she countered.
"Yes", I responded, "I know. I'm responsible for some of the comps. Would you like me to tell you about those other properties?"

After some back-and-forth she concluded, "the sellers want to try it at this price. Anyone can make an offer. I'd love to do a deal with you."

Fat chance, I thought, exiting. How do I convince buyers to look and write offers on a property two hundred thousand dollars over market? Another garbage listing.

Inventory is growing, so says the media, citing the foreclosure rate, the pending home sales index, and whatever Data Quick measure they have at the ready.

I'm not seeing it in "my neighborhoods".

There's a little more inventory perhaps at the southern edge of my beat, along the Slauson rim, where a few foreclosures, and bank short sales have popped up. Mostly just garbage listings. Every neighborhood has two or three garbage listings, astronomically priced, interminably active.

Even the bullest bull market has garbage too, or false inventory. Three years ago however, if an overpriced property stayed active long enough, the market might rise to meet it. Now, the garbage sits and accumulates.

To be continued.....