🦋🌸 The big question right now is “when are there going to be more homes coming on the market, and how many?”
Well, it has finally started-other than the ultra-luxury market (homes over $3M), the active listing inventory rose in each price point. And this is consistent with what we have seen historically regarding inventory.
*** This historic 5-year average is taken from the years 2015 through 2019 because 2020’s numbers were heavily skewed due to the pandemic.
For all of the buyers struggling to find a home, the extra inventory is a step in the right direction. This will probably continue until it reaches a peak later in the year. In LA County, the inventory typically does not peak until July or August (see chart 1).
This year, it may peak even later in the year as mortgage rates are anticipated to rise. Higher rates will decelerate the housing market and although it will remain a Hot Seller’s Market and prices are not anticipated to drop, it will not be as crazy as it is now in terms of each house for sale seemingly receiving dozens of offers.
