The hot housing market looks like it’s coming to an end 🤯

You may have noticed it too. The house down the street is still for sale after one week on the market. Some sellers have reduced initial asking prices. Read on for details and what this could mean for you.

📊 (See chart on second slide) With supply rising and demand falling, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, increased from 64 to 71 days in the past couple of weeks, which is a Slight Seller’s Market (between 60 and 90 days). Housing is rapidly cooling, and the market time is at its highest level since May 2020. For comparison, It was at 39 days last year.

Keep in mind that the overall inventory is still down substantially compared to where it was prior to COVID. The 3-year average inventory from 2017 to 2019 was 13,030 homes, 28% higher than today’s level. Muted demand is currently matched with a muted supply.

Here’s what this means for you:

If you are a buyer, you now have more power. You have more houses to look at, more time to decide, and more leverage in negotiations.

If you are a seller, the longer you wait, the slower and more challenging the market will be. There are fewer multiple offers and home values are not appreciating as quickly. The market is no longer instant and proper pricing is absolutely crucial to find success.

Of course every home and every situation is different, so reach out if you have any questions about how to navigate the market this summer! 💁🏾‍♀️