Why Is Housing Inventory So Low in Southern California? Part 2
If you plan on buying a home in Southern California as an investment property, or for your primary residence, you most likely already know that housing inventory here is low but the big question is why?
In part two, of this three-part series, we will answer the question of why the housing inventory is so low in Southern California and what home buyers can expect from the real estate market for the remainder of 2018.
Pent Up Supply
Based on conversations that we’ve had with sellers in recent months it’s likely that another reason why housing inventory is so low in Southern California is due to “pent-up supply”.
What does this mean?
Pent up supply means that there are a group of homeowners in Southern California who want to sell their homes within the next six months to one year but don’t have to sell right now.
These sellers are watching the real estate market and are waiting to see if home values are still going to go up in Southern California or if they will start to decline before they choose to list their homes.
When Will Pent Up Supply Enter the Market?
The obvious question is when will pent-up supply enter the Southern California Real Estate market?
Obviously, we would love to see pent-up sellers start listing their homes now but this may not happen for another six months or longer.
The economy is still strong in Southern California and demand for Real Estate is at an all-time high so it makes sense for some pent-up sellers to wait to list their homes until they feel that home values have stopped increasing and they should sell their homes now.
While we wait for pent-up supply to enter the Real Estate market we’re staying busy serving sellers who have to sell their homes now.
Some of the wide variety of sellers that we’re representing right now include sellers who are getting divorced, trust sales, move-ups or people who are downsizing.
Home Inventory Will Enter the Market
At Fred Sed Group we feel confident that home inventory will enter the Real Estate market.
If you’re thinking about selling your home, now is the perfect time to get it ready for sale.
Start getting your home ready for sale by contacting us at 800-921-9231 or click here to connect with us online.