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

6/14/24

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

Prices:

The median home prices rose in May for all four counties, with an average increase of 1.35%. Orange and Riverside counties have reached new all-time-high median prices. San Bernardino County is just 0.3% below its all-time high, and Los Angeles County is just 1% below its all-time high.

Inventory:

The number of available homes ticked up about 5.4% in May. The four counties collectively have about 900 more homes for sale now compared to April. That’s up about 2.6% compared to last year, but it’s still much lower than pre-pandemic levels.

Time on market:

The pace of home sales remained pretty fast in May. About half of the homes in the region sold in 16 days or fewer. This is a little faster than the pace a year ago.

Supply from sellers vs. demand from buyers:

The relative strength of buyers versus sellers remained about the same during May. 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 May, months of inventory rose slightly from 2.6 to 2.8 on average. This remains one of the hottest seasons 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 maintain upward pressure on prices. That upward pressure will have more effect if interest rates drop.

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.

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