The unsold inventory index indicates how many months it will take to deplete the supply of homes at the current sales rate. The current rate of 3.8 months is the lowest it has been since 2005. In December of 2008 the California Unsold Index, or UII was 5.8 months. Real estate investors acquiring foreclosures within three or four days of being listed can explain the low Unsold Inventory Index in California. Homes as low as forty or fifty thousand are selling in Sacramento to cash buyers. With so many real estate investors presenting cash offers banks are not willing to look at offers that require financing.
