Home Prices Rise As Inventories Drop
Lydia Aguayo, real estate broker associate with Keller Williams Downey
Real Estate Market Recovery:
As throughout the rest of the country, California real estate and real estate in Los Angeles County has seen a great housing recovery as compared to the devastating drops in home sales and prices that began in late 2007 and up throughout much of 2009.
However, homes for sale in Los Angeles dropped to a negative eight point three percent (-8.3%) in July, 2016, with 210 fewer homes available for sale during July, 2016, compared to July, 2015. And buyers can not swoop up homes fast enough. The average days on market (DOM) is currently only forty one days compared to the historical average of two to three months.
Housing Demand Remains Strong :
Although only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view home ownership as part of their American Dream, according to a new quarterly consumer survey released today by the National Association of Realtors. [December, 2015].
New Home Construction:
One would think that the easy solution for our tight inventory would be to construct new homes. However, while the 2007 housing crises left home sales barely limping along, the new home construction industry had also bottomed out and was practically on life support.
Up until recently, and due in part to rising construction costs and in the rise in the number of renters, the construction industry had focused more on the building of luxury homes and new apartment buildings.
However, on August 23, 2016, the US Commerce Department reported a 9-year high in the construction of new medium-sized single family homes. It may take a little time, but it looks like our housing inventory may soon be easing up some.