The Los Angeles housing inventory is at or near the lowest on record. Average home sales in Southern California as a whole were down 14% from the average in February.
What is causing this?
- There are fewer lower-priced homes being built with the emphasis being on the upper market. This hurts first-time homebuyers.
- Investors who bought up homes during the crash turned them into rental income properties.
- The higher the prices go, the less inventory there is. Sellers are loathe to move, both because even though the equity in their homes is increased, moving up may not be affordable for them. Many choose to renovate.
An industry that is benefitting from this housing shortage is home improvement.
There is no foreseeable easing of this crisis and in the lower to mid-level price-range competition is fierce.
One option is for Los Angeles home buyers to seek out reasonable lots and investigate the possibility of building, as clients of mine who recently sold their home are doing.
Let’s home things ease up soon. There is a shortage of rental properties also, so potential home buyers are going to need a lot of patience.
Something’s got to give!
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