As reported in the Los Angeles Times, by Andrew Khouri, there was a three month supply of existing homes for sale in July in the Los Angeles metropolitan area, as reported by the California Association of Realtors. “Normal” supply is considered to be six to seven months.
Home values went up sharply this year, due in part to the improving economy and historically low interest rates. But inventory has been low and those homebuyers faced a lot of competition from all-cash investors. However, mortgage rates have been increasing and affecting would-be homebuyers, as the affordability index goes up.
August saw an increase of supply in Los Angeles County, according to Realtor.com, and sales hit a seven year high for the month. As more homes come on the market, we should start see the easing of price increases.
If you’re interested in Malibu sales, click here to view Malibu’s monthly market stats.
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