Throughout the nation, prices for homes are peaking above what they were in 2006. To some, it is a sign that we may be heading toward another chaotic wave. Unlike the market in 2007, lending standards are much stronger – making this boom more sustainable. Coupled with decreasing unemployment and proposed easing of Dodd-Frank regulations, all signs point toward a continued ride over the next few years. The ideal situation would be growth of GDP and gradual (slow) increases in interest rates this year. A continued positive outlook will also put real estate in record territory.
Local Numbers Show Continued Tight Inventory
Throughout South Los Angeles and North Orange County, new listings continue to lag behind previous years. This year they are down 4.7% for Single Family homes and 6.0% for Townhouse-Condo properties year-over-year.
Pending Sales Are Down While Closed Sales are Up – Ever So Slightly
Pending Sales across the local marketplace also decreased dramatically by almost 41.4% for Single Family homes and 47.2% for Townhouse-Condo properties. Sold single family homes have increased modestly by 2.5% while townhomes and condos increased only 1.1%.
A median sales for single family homes increased 6.3% to $680,000 and 8.1% to $432,500 Townhouse-Condo properties.
Inventory of Homes Decreases as Months Supply is Steady
A key indicator of the health of a marketplace is the inventory of homes for sale. Year over year, there is a marked decrease in home inventory (6.8% for single family homes and 10.9% for Townhomes/Condos).
Months Supply of Inventory remained flat for Single Family units but was down 4.0% for Townhouse-Condo units.
When comparing this market rise compared to that in 2003-2006, I see a much more solid base upon which to conduct real estate transactions, the economy is steaming forward. More jobs are available, unemployment is at its lowest publish rate in the past 15 years and workers are feeling positive that their wages are rising as is optimism.
Even though we continue to battle an inventory shortage in our marketplace, optimism remains high and sales will be brisk, pressure on increased prices will continue and a sellers market will remain the norm for the foreseeable future.
Dave Harbison has been a Real Estate Practitioner in Long Beach and surrounding communities for over 12 years. He regularly contributes to blogs, news outlets and other media, providing insight to home owners, buyers and sellers in the Long Beach, Seal Beach, Lakewood, Sunset Beach, Huntington Beach, Newport, Cypress and Cerritos. Dave Harbison Long Beach REALTOR® Main Street Realtors (562)618-9770 firstname.lastname@example.org DRE:#01475840 — Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties