Real Estate Inventory Keeps Dropping In The South Bay Los Angeles
Real Estate Inventory Keeps Dropping In The South Bay Los Angeles
Real Estate Inventory Keeps Dropping In The South Bay almost every month for over a year. Inventory is currently at it’s lowest in recorded history!
What do you do if you want to buy a house?
What if you want to SELL YOUR HOUSE?
Why are interest rates going up?
Why are we experiencing such high inflation?
I know… Soooo many questions!
Are these factors currently changing the real estate market in the South Bay? Not yet… but they will …. eventually. Keep reading! Or watch the video. It’s more fun than reading.
Let’s look at the real estate inventory in the South Bay and why it keeps dropping.
This video will look at Hermosa Beach and Manhattan Beach. It’s April of 2022 & we’ll look at the numbers in Hermosa Beach and Manhattan Beach Los Angeles and see what’s happened so far this year in those real estate markets.
Let’s look at Days on Market or DOM. This is an indicator of any market.
In Hermosa Beach in the 1st Quarter of 2021, Median Days On Market was 14. Still super low! And so far this year, 9. Single digits! Crazy! A “sellers market” is considered 60 Days On Market or LESS!. In Manhattan Beach, Q1 of 2021 was 17 DOM and so far in 2022 it’s 14.
I have a bunch of slides with more detail and you can find them in a link below.
(you know… if you’re a number nerd and you like that stuff…. you know who you are!)
You Can Find ALL The Slides Here: Q1 2022 Stats Hermosa Beach and Manhattan Beach
This March Madness has moved right into April with no real end in sight. This is Economics 101.1010101… Supply isn’t meeting buyers demand and since inventory is so ridiculously low… it’s still causing multiple offers in a lot of price points and it’s still causing prices to go up & over the list price.
Sidenote… EVEN in the most fast moving real estate market in our lifetime… you can STILL OVERPRICE a home. This is also causing frustration for buyers who are dealing with greedy, unrealistic sellers. Hey… if your house isn’t selling in 30 days or less… you’re overpriced!
Unless you’re over $5 Million dollars… then there are just less active buyers out there at that price point and above.
Getting back to Econ 101… since the good listings are getting scooped up and there are fewer and fewer homes coming on the market, the real estate inventory keeps dropping here in the South Bay LA.
Let’s look at Inventory in Hermosa Beach Q1 21 and Q1 22. In 2021 Jan Feb & March. Active listings were 66, 67 & 66. Compared with this year Active listings were 37, 58 & 40. Woah.
In Manhattan Beach.. shockingly there’s the same trend. January, February & March of 2021 the Active listings were 120, 137 & 154. Compared to this year it was 75, 82 & 80.
WOW… that’s quite a drop!
To really see what’s going on… let’s look at year to date in both cities vs year to date 2021. Actives and Pending Sales and Solds.
Hermosa Beach in Q1 2021 had 44 Active listings and 67 Pendings and 62 Closed Escrows… or Solds vs. Q1 2022 has had 21 Active listings, 47 Pendings and 43 Solds.
Here’s the issue with the inventory. Look at this.
Active listings are DOWN 52%
Pending sales are DOWN 30%
Sold are DOWN 31%!
There it is! The reason there’s multiple offers and homes are selling OVER list prices… sometimes in the $100’s of Thousands over!
Same thing in Manhattan Beach. In Q1 2021 there was 83 Actives, 122 Pendings and 93 Solds.
In Q1 2022 there were 34 Actives, 84 Pendings and 69 Solds.
That’s Active listings DOWN 59%
Pending sales DOWN 31%
Solds DOWN 26%!
Here’s the deal… here in the South Bay Los Angeles… it’s an AMAZING place to live! The weather is mild and we have lots of sunshine. Most of our houses don’t have AC because we live near the beach. A lot of people living here NEVER move. They live here, raise a family, retire and die here. Where else would you move to? It’s THAT NICE!
Although… I’ve heard Barstow is quite lovely!.. Yeah!!!
Therefore… there isn’t a lot of people moving in and out or relocating. Plus these beach towns and surrounding cities aren’t that big. A few hundred thousand people so there’s just not a lot of homes to sell compared to all of Los Angeles County which has over 10 million people.
That all contributes to not a lot of housing inventory moving each year here in the South Bay.
Don’t forget to look at the rest of those slides in the link I put above.
Virtually Yours…
Daryl Palmer Real Real Estatetist
Re/Max Estate Properties RE# 1986622
facebook: https://www.facebook.com/dpbeachhomes/
Buy my Amazon #1 Best Selling Book: Dwelling Selling – How The Internet Made Selling A House In The South Bay Easy…& Other Funny Stories https://www.amazon.com/author/daryl
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