Main Content

Southern California Real Estate Market Trends

How is the housing market now in terms of the numbers?

 

3/19/24

The market heated up in February, based on CRMLS data for Los Angeles, San Bernardino, Riverside, and Orange counties.

Prices:

The median home prices rose slightly in February for all four counties except San Bernardino, which stayed the same. Notably, Orange County broke the last record from May 2022, which means it’s made up all the appreciation lost after interest rates rose so dramatically.

Inventory:

The number of homes for sale dropped again in all four counties. On average, there is 5.5% less inventory available to buyers compared to January, and 22.3% less compared to last year.

 

Time on market:

The pace of home sales slowed slightly in February. About half of the homes in the region sold in 21 days or fewer. This is a lot faster than the pace we saw in February of last year, when the median time on the market was about 32 days.

Supply from sellers vs. demand from buyers:

Sellers gained some advantage in February as the market heated up a little bit. 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. This measure dropped in February, from 2.5 months of inventory to 2.4 months of inventory. That means the market heated up about 70% in a single month, and it would take 2.5 times the inventory currently available to balance current demand.

What this means for sellers:

Well-priced homes are likely to receive multiple offers and get strong prices relative to recent comparable sales. If these conditions continue, it will create upward pressure on prices. That upward pressure will have more effect if interest rates drop. Check back in April to see how March’s numbers turned out.

What this means for buyers:

Buyers should be prepared for significant competition on well-priced, good-looking homes. Under these conditions, prices typically rise, so I don’t expect a big drop in prices in the near future.

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!

Interested? let’s talk

    Skip to content