Housing Inventory/Supply in Southern California - It's a Big Issue

Data as of 2-24-2023 - Market Summary

Housing inventory has been an issue for about 10 years, but one bright spot in the graph shows that, overall, inventory in Los Angeles County has increased to 3.1 months supply as of December, 2022. According to data released by California Association of Realtors, this is an increase of 138%+ compared to 2021 when the houses were being consumed by multiple offers in a matter of days.  It's also an overall increase compared to previous years when inventory was as low as one month in many cities/neighborhoods. But it's still 50% lower than what is considered the traditional time for inventory supply:  which is 6 months, meaning that at the present rate of sale, it would be 6 months before there were no houses left to sell if no new properties came on the market during that time.

The inventory increase shows similar levels for statewide and nationwide, but is still well below the 6 month standard. What is completely obvious is the $200,000+ income required to purchase in Los Angeles County and California as a whole compared to the lower national average of $94,400.

Graph of sellers in Jan and Feb

Steven Thomas, Southern California economist who publishes Reports on Housing, follows the market in his weekly videos on You Tube and Facecook.  In his lastest weekly report, new listings are down 41% in January, and February is down 40%, or a total of 17,000 missing for sale signs in Southern California, with San Diego being the most affected. Note the graph lines showing levels in years since 2015, and where we are now.  One of the major reasons, according to him, for the lack of inventory are the very low interest rates current property owners are enjoying--not giving enough incentive to move.

If you would like to find out about the selling process for your house, condo or 4-unit property, please contact me for vital information about selling, whether yours is an owner-occupied property or investor owned.

#marketvalue #LongBeachrealestate #housinginventory

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996