It’s September, and we’re 70% through 2021. Here in Los Angeles, the strong home sale trend continues, with prices remaining strong and inventory of homes for sale low.
One of the most frequent questions I get asked is, “Is the market bubble going to burst”? My answer remains an emphatic “No!” First off, there is no bubble. This is a prolonged up cycle of home sales. Second, for most areas of Los Angeles and California and much of the United States, there simply isn’t enough housing available to buy to meet the demand of buyers. When there are less than 6 months of inventory, it’s considered a Sellers’ Market, over 6 months, it’s a Buyers’ Market. It is common knowledge that we’ve been in a Sellers’ Market for over a year and a half now. The key point of that is that the amount of inventory has been very limited, hovering around 1 month or less in most LA communities, for months and months. What’s that mean? If there’s a 1-month supply of inventory and no new houses came on the market for sale, there would be 0 houses available to buy in 1 month! It will take quite a while for inventory to build up enough for there even to be concern of the market taking a drastic downturn.
Want to see how much inventory is in the Los Angeles communities I follow? Take a look at the video.
To find out how another LA community is doing, reach out to me. I’ll send you your own market update.
To see how this market is impacting your Home’s value, get your personalized, complimentary market report here.
Source: CRMLS, The MLS