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Southern California Real Estate Market Trends

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

10/20/21 2:36 PM – Caleb Hanson

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 substantially from last year. San Bernardino County is up the most at 22.7%, and Los Angeles County is up least at 14.6%.  From August to September, the median price rose very slightly in San Bernardino and Riverside counties, and it dropped slightly in Los Angeles and Orange Counties. 

Inventory:

There are still way fewer homes for sale in all four counties right now than there were at this time last year, but there was a slight increase in the number of homes available in all four counties from August to September. That makes two months in a row of slightly increasing inventory during a time when the number of homes available usually drops. If this trend continues, it could create some cooling in the market.

Time on market:

Home sales are still happening at blinding speed. The median time for sellers to be on market before accepting an offer is between 8 and 10 days. This means half of the homes in the region sold faster than that and half took longer. This is much faster than September last year when the median time on market was between 13 and 17 days.

Supply from sellers vs. demand from buyers:

Buyers still substantially outnumber sellers in all four counties. We measure this in months of inventory, which tells us how fast buyers are buying compared to how fast sellers are adding homes to the market. Lower numbers mean the market is hotter and more favorable to sellers. Since last year, all four counties saw months of inventory drop between 25% and 52%. This means the market is significantly hotter right now than it was at this time last year. However, from August to September, Los Angeles, San Bernardino, and Riverside counties cooled just a little bit.

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. 

What this means for buyers:

Buyers should be prepared to make aggressive, compelling offers quickly in order to win in multiple-offer situations. 

What this means for owners:

It’s a good time to refinance because higher property values mean higher equity percentages, which can help with getting more favorable interest rates. Call, text, or e-mail me to learn how to think strategically about whether you should refinance.

Want to explore your options? Call or text Caleb at 626-328-4199 today!

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