For the statisticians and other folks who prefer graphs to see what's going on a specific market, here's a snapshot of what it looks like in Walnut Creek CA, comparing the market activity the past two years, starting in October 2007 - October 2009.
MONTHS SUPPLY OF INVENTORY When there are more buyers than there are sellers, it means that it's a seller's market. The higher the months inventory, the more it becomes a seller's market. Traditionally, if the the months inventory is more than six months, it's a buyer's market, and vice versa.
In Walnut Creek the months' inventory was 8.2 months in October 2007, and 2.2 in October 2009 --- 73% decrease.
UNDER CONTRACT
- October 2009 reports the highest peak, with 155 homes in contract compared to only 65 in October 20007 and 85 in October 2008.
- December 2007 reported the fewest contracts. The following year, December 2008 recorded 68 homes in contract.
MEDIAN PRICE The median price was the lowest in February 2009 and bounced back in April. Nonetheless, the general trend seems to be downwards. October 2009's median price is the next lowest point. Sellers may have to adjust their expectations depending on current market values.
SUPPLY AND DEMAND Here's a good way to correlate number of properties sold (demand) with number of properties for sale (supply). .
DAYS ON MARKET So, how long do the Walnut Creek properties stay on the market before they have accepted offers? With the exception of February 2008 where the average days on market peaked to nearly 100 days, the average days on market is steady at between 60-70 days. 
So...what are these graphs telling you?
