How is the housing market now in terms of the numbers?
The market showed continued heat in August based on CRMLS data for Los Angeles, San Bernardino, Riverside, and Orange counties.
The median price fell slightly in August for all four counties except Riverside. However, compared to last year, San Bernardino is the only county that’s down a little bit. Orange County is up the most with a 5% bump in the median price since last year.
The number of homes for sale remains about 40% lower than last year, and that’s about the same as it was last month. The change in inventory this month was minimal.
Time on market:
The pace of home sales held steady in August. About half the homes in the region sold in 13 days or less. This is about the same as the pace at this time last year.
Supply from sellers vs. demand from buyers:
Buyers still substantially outnumber sellers in most SoCal markets. Months of inventory measures supply relative to demand. As months of inventory drops, the market is heating up, and as it rises, the market is cooling down. All of the counties except Riverside cooled slightly in August, but with 2.5 months of inventory on average, we’re still in a really hot market. We’d need more than double the current inventory to balance out the current demand.
What this means for sellers:
Well-priced homes are still likely to receive multiple offers and get strong prices relative to recent, comparable sales. However, because interest rates have gone up, it’s easier for overpriced homes to get stuck on the market.
What this means for buyers:
Buyers should be prepared for significant competition on well-priced, good-looking homes. Also, those waiting on buying a home in hopes of a major drop in prices will likely end up waiting a long time and spend a lot of money in rent while waiting.
If your current home doesn’t support your current life and goals, we’re here to help you find one that does. Call or text us at 626-328-4199 to learn about your options!