I looked at combined data from CRMLS for Los Angeles, San Bernardino, Riverside, and Orange counties as a representative sample for Southern California, and here’s what I saw:
Prices: The median price in each county is up from last year and also rose during the last month. Orange County continued its lead in appreciation with a 3.6% rise since last month and a 24.9% rise since last year. Los Angeles County had the weakest appreciation year-over-year with a 10% rise in the median price.
Inventory: All four counties have significantly fewer homes for sale at any one time than they did at this time last year. San Bernardino County has seen the largest drop in inventory with 34.4% fewer homes for sale at any one time in April 2022 compared to April 2021. Riverside County has seen the smallest drop, with a 12.6% drop in available homes from April 2021 to April 2022.
Time on market: Home sales are still happening really fast. The median days on market ranges from 6 days in Orange County to 12 days in Riverside County.
Supply from sellers vs. demand from buyers: Buyers still substantially outnumber sellers in all four counties even though they all cooled down a little bit last month. We use months of inventory to measure how much supply is coming into the market relative to demand. Compared to last year, all four counties are hotter now, with Orange County as the hottest at just 1.1 months of inventory.
What this means for sellers: Sellers can reasonably expect to get a little more for their property than the prices of recent comparable sales. Many sellers receive multiple offers, which creates a substantial negotiating advantage. It’s a really good time for those who want to downsize or cash out investment property.
Want to explore your options? Call or text Caleb at 626-328-4199.
What this means for buyers: Buyers should be prepared to make aggressive, compelling offers quickly in order to win in multiple-offer situations.
Want to explore your options? Call or text Caleb at 626-328-4199.
What this means for owners: It might be a good time to explore using a home equity line of credit to help with financing construction for an accessory dwelling unit (ADU) that can create an income stream from the equity created with all this appreciation. CalHFA is offering assistance to qualified homeowners who want to build an accessory dwelling unit. Click here to learn more.
Click below to see the real estate trend charts for each county: