According to the LA Times, the supply of houses for sale is starting to open up for Southern California home buyers. This event could initiate a strong season for the region’s real estate market.
Said Rich Simonin, chief executive of a real estate firm in Riverside, “Supply is not an issue right now, not like it was. It’s not a problem.”
Market watchers and real estate experts have started to see more and more sellers as prices remain relatively high and interest rates remain low. According to data from the California Association of Realtors, the number of homes listed for sale in February increased by 9% in the Los Angeles County from a year earlier.
Economists say greater supply should keep prices in check. Paralleling an improving economy, they suggest the recent trends may fuel a broad recovery in the region’s housing market in the next few months.
For some, making a real estate purchase within the Southern California region is difficult due to affordability.
A recent report suggested that the state of California needs to build approximately 100,000 more homes each year than it does now — nearly all in coastal regions — to relieve pressure off the housing costs that are already 2.5 times the national average. However if recent trends in a growing inventory continues, it should make buying a property in the Golden State a more obtainable reality.
But right now, claimed Simonin, the housing market is more stable than he can remember it being in a long time, balanced between buyers and sellers, appreciating but still affordable.
“It won’t stay this way very long,” he said. “We should enjoy it while it does.”