LA Housing Inventory is so low it may feel like there is nothing available to purchase. And if you feel that way…you’re right.

GRAPH ONE-INVENTORY

Last year the inventory in Los Angeles County started the year at an all-time low with 7,668 available homes. January 1, 2022, just a few weeks ago, only 4,432 homes were on the market. A NEW all time low. The difference between this year and last year’s record low is huge. There are 34% fewer homes on the market. Every price range has been impacted.

GRAPH TWO—EXPECTED MARKET TIME

Expected Market Time has decreased, drastically in some price ranges as inventory dips. Inventory was already trending lower prior to the pandemic, but the pandemic accelerated the issue as fewer homes were placed on the market despite soaring demand.

WHAT DOES THIS MEAN? With today’s heightened demand, homes are placed into escrow nearly as fast as they are coming on the market. Expect inventory to remain flat or maybe even drop for the next several weeks. One caveat to this is rising interest rates. If rates rise another half a point and hit 4%, then the inventory will rise at a swifter pace sooner.