California housing supply moving back to normal

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Irvine consultant John Burns reports this month that California’s glut of unsold homes ‘is starting to come back in balance, while Florida’s supply is completely out of whack.’

Burns says falling prices and the state’s $10,000 home buyer tax credit have brought the supply of homes for sale in the state to less than a 10-month inventory, while San Diego and Orange County have less than five months’ supply.

But job losses will mean no bottom soon: ‘While California’s supply is returning to norm, its economy is not,’ Burns writes.

--Peter Y. Hong