What’s happening in this Los Angeles Market? Here’s the short of it.

Well, that’s a loaded question.  The short answer: A lot.  But I know you are not reading this for just that information.  Let’s dive deeper.

Here are three things you need to know:

1. Inventory is creeping up.  For the month of July, the Month’s Supply went up to 2.0 months, up from the 1.7 months from before.  For more information on what the Month’s Supply is, check out my video here.  This is still a Seller’s Market, but it does bring up the question, “will more homes come?”  The answer is probably, as condos have more equity, and it gives sellers the money needed to jump up to a house.
2. Interest rates are still low.  The rates are still hovering at or below 3%.  This means buyers can afford more house than they could in previous years, thus why they are still around.  This gives them the motivation to continue the house hunting.
3. Buyer fatigue is real.  This one is hard to measure but there are reports of this happening.  I am seeing it with my own clients. They are starting to push back on some of these high prices.  Believe it or not, this is a good thing.  This will hopefully get some sellers to set more realistic prices, which is why we are starting to see price reductions.

Of course, the market is changing and difficult to truly predict.  Currently there are no signs of a major crash that some buyers are hoping for.