Inventory vs Prices (NJ vs AZ)

[Josh Shapiro]

First post. Looking to invest in my first real estate rental, SFR or potentially multi-family.

What makes sense now, investing in a place with lots of inventory and prices have dropped or investing in area with low inventory and prices are stagnant?

As background, interested in Chandler area and also North Jersey. In North Jersey, prices are expensive, and not falling, but inventory is super low. On the other hand, AZ, has high inventory (relatively) but I can find properties where prices have fallen 10%. Thoughts?

Thanks!