Available inventory continues to be the story in Southern California housing numbers. Housing affordability is an issue, as incomes haven’t kept up with prices, but the demand is still greater than than the available properties for sale, so housing prices continues to march higher. The quantity of sales have dropped, for the same reason. If the quantity of properties available correlated the buyer demand, the quantity of sales would be substantially higher.
Reality, the quantity of new housing stock being developed is only half of what’s required to keep up with population growth. Housing prices are not in a bubble. In fact you can see purchasing real estate as an insurance policy against future inflation in housing (rental and purchasing) costs, and against rising mortgage rates.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth