Two of the biggest obstacles to growth in the Southern California housing market are the lack of supply and, as a result of this lack, a dearth of affordable homes. However, thanks to a recent uptick in the number of homes for sale, it looks like the housing market is in for a strong spring.
Based on information from the California Association of Realtors (CAR), in February, there was a nine percent year-over-year increase in the number of homes listed for sale in Los Angeles County. The rise in the number of homes on the market is currently attributed to fewer people being underwater on their homes, lower interest rates and relatively high prices. As a result of the growth in listings, the time it would take to sell all of them is at a three year high.
A low number of listings have recently hampered the Southern California housing market because it has priced many people out of the market. Of the relatively few properties that do end up being listed, it is common for them to end up causing bidding wars. With an influx of available homes for sale, it should keep prices in check.
According to a senior economist at the CAR, buyer interest has risen in the last few weeks, with more people searching for real estate on the Internet and showing up at open houses. Although inventory is likely to crop up as an issue again, right now, the feeling is that the market is balanced.
