Inventory is as tight as it has ever been in “recorded” history. (That is, San Francisco MLS history, which is about 20 years.) We have buyers chomping at the bit with low great new jobs and relocation packages for the first time in years and not enough homes available to satisfy them. Contributing factors are that urban living hasn’t been this in style since the 1920s and interest rates are even lower than last time I wrote to you. Open houses are busy and well-priced homes are selling quickly in all market segments. Sales absorption is outpacing oncoming listings even in this early spring season. I am hearing this from colleagues in Wine Country as well as Sacramento. I don’t know what it means for the future, but I do think that 2012 may be the year that turns things around in the real estate markets less affected by distressed sales. Whatever happens, it seems like it’s going to be an exciting year full of multiple offer situations and where decisive and timely action will carry the day for buyers as well as sellers. And of course I have charts to back this up – to see them click here.