I feel for local home shoppers, especially those who don’t have huge budgets for housing expenses.
Southern California’s home sellers are missing in action!
The region’s supply of existing homes is thin. Plus, new-home developments are pricey and don’t offer much in the way of move-in-soon opportunities. And the light inventory has a worrisome, self-fulfilling prophecy catch: Some owners aren’t selling because they fear not being able to find a new residence.
Fresh stats show for-sale home inventories in brokers’ networks have been sliced by one-seventh in a year. According to ReportsOnHousing, 35,426 residences were listed June 2 in the region’s five counties — Los Angeles, Orange, Riverside, San Bernardino and San Diego. That’s down 5,628 homes from a year ago, or a 14 percent slump.
Yes, Southern California house hunters, this is odd. Typically, you have more choices this time of year.
It’s not 2013-like tight supply when just 27,153 homes were for sale. But early June 2017 supply is 2,912 listings below the 2012-16 average, or 8 percent less.
One key reason? Sellers have been slow to put homes on the market. Since 2017 started, listings have grown only by 3,128 vs. an increase of 6,593 last year in the same timeframe.
Developers haven’t been much help. At the end of the first quarter, builders in the six-county area had a new-home inventory of 4,565 residences. Yes, that’s up 378 in a year, but just 900 of that current supply are homes ready for move-in.
Not only are there limited choices, the typical home on the market goes rapidly from a new listing to a signed sales contract. According to a ReportsOnHousing metric, homes in Southern California were taking 55 days to get into escrow in early June, nine fewer days than a year ago.
The limited options force house hunters to bid up prices, especially at the lower-end of real estate’s price spectrum. CoreLogic’s widely watched median selling price for the six-county area,…