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

4/8/24

The Southern California market stayed hot in March, based on CRMLS data for Los Angeles, San Bernardino, Riverside, and Orange counties.

Prices:

The median home prices rose in March for all four counties with an average increase of 1.77%. Year-over-year, Orange County has appreciated the most with a 14.5% gain, and San Bernardino has appreciated least with a 4.0% gain.

Inventory:

The number of available homes ticked up about 1.4%  in March. The four counties collectively have about 200 more homes for sale compared to February. That’s still down about 14.4% compared to last year, so inventory is still very low.

Time on market:

The pace of home sales picked up in March as the median time on the market dropped a couple of days. About half of the homes in the region sold in 19 days or fewer. This is a lot faster than the pace we saw last March, when the median time on market was about 29 days.

Supply from sellers vs. demand from buyers:

The relative strength of buyers versus sellers remained about the same during March. 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. During March, months of inventory stayed the same in every county except Orange County where it rose from 2.8 to 2.9. With an average for 2.4 months of inventory, this remains the hottest time in the last three years.  It would take more than double the available supply to balance out 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 May to see how April’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!