I've received a few emails asking about the drop in inventory over the last few weeks and some people are wondering (freaking out), "what's going on". Why the big drop? It looks to me as if that new state law, SB1137 is the culprit. It does not look like increased sales are reason for the drop. It looks like there are less new listings hitting the market. Which is what should happen, until the banks contact all the delinquent borrowers. I posted a couple of weeks ago that this law was drastically cutting the foreclosures (temporarily). It may also reduce the sales, since nearly all sales now are foreclosures. With less foreclosures hitting the market there should be less sales. This might be hard to determine though as the sales naturally drop off this time of year anyway.