Sometimes REALTORs can get a reputation of always saying things: It’s a great time to buy! It’s a great time to sell! Location, location, location! Inventory is low!
That last point — inventory is low — may not seem intuitive because it seems like there are homes for sale right now.
Taking a look at the January 2023 statistics since the February 2023 numbers are not yet released, all 4 big counties in our local area of Southern California have low inventory. Los Angeles, Riverside, Orange, and San Bernardino counties all have below five months of unsold inventory. This statistic – unsold inventory – factors in how long it would take all the homes on the market to sell if no other homes came to market.
Southern California is a hot real estate market and home building has not happened to keep pace with population growth and home buyer demand, hence a housing shortage. We don’t have enough homes on the market, especially homes that are affordable for the typical home buyer.
During the boom of 2021, a lot of counties had single digit number of days on market. Now, most counties are in the high twenties or thirties. Homes are on the market typically 3-5 weeks. So what does that mean about inventory? Homes are staying on the market longer, but there still aren’t that many homes for sale. Often a home buyer who is looking in a specific city may only have a couple options for the type of home that meets their criteria.
What is this good for Sellers? In low inventory markets, buyers are not inundated with options. Yes, mortgage applications are down and home buyer demand has slowed considerably since mortgage rates spiked last year. But buyers still come into the real estate market for life events: death, divorce, marriage, family formation, new jobs, inheritances.
KALEOs REALTORS show up when you experience a death in the family and the family home needs to be sold because it is too expensive to maintain. We show up when you are excited about buying your first house and moving out of an apartment. We answer the call when you are moving out of state for an exciting new job.
At KALEO we care about our clients.
Ever wondered how much you could buy if you sold right now and used the equity you’ve accumulated as a down payment? Have you considered buying a duplex or triplex as an investment property? What about combining your home with your parents and purchasing a multi-generational home with an ADU in the backyard?
Message, text or call KALEO and we can talk through your real estate options.