The Los Angeles Housing Shortage will last as long as persistent low mortgage interest rates, stubbornly low inventories and steady growth in buyer demand.
Los Angeles Bidding War Trend
According to data from Realtor.com®’s Weekly Recovery Report for the week ending Aug. 22, the bidding wars may continue into the fall. The week reached a 106.6 Housing Market Recovery Index—a 1.8-point increase over last week and 6.6. points above the pre-COVID baseline of January 2020. Data shows that buyers are still out in full force despite a continuing shortage of inventory that’s driving prices upward. According to Realtor.com®, national inventory is down 37 percent year-over-year, and home prices have been rising for 15 consecutive weeks.
As buyers step-up to secure accepted home purchase offers and seek to qualify for low mortgage interest rates, homes are selling at a fast pace: Pending sales are 9 days faster year-over-year. The median listing prices of homes on a national level have increased by 10.3 percent year-over-year, driven by inventory shortage, and new listings are down 13 percent year over year.
Buying and Selling Impact on Residential and Income Properties
From the field, the Los Angeles Homes Market is a “market of opportunity” where a buyer can acquire their need for “resettlement, migration, neighborhood growth and shifting demographic and generational profiles. This market is fueling as much lateral movement and purchases as an upward and downsizing movement— such factors and decisions on Buying and Selling impact residential and residential income properties.
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