Why Is Home Inventory So Low in Southern California? – Part 3
The 2018 Real Estate market continues to remain strong in Southern California but the lack of home inventory remains a concern.
In part 3 of our three-part series, we will provide you with another reason why home inventory in Southern California remains low.
Many Homeowners Are on The Fence Right Now
Based on our conversations with homeowners in Orange County, Los Angeles, and the Inland Empire we know that many owners are “on the fence” right now about selling their homes.
A typical scenario that a Southern California homeowner faces is similar to this:
- They purchased their home for $550,000-$575,000 five years ago.
- Their home is now worth between $775,000-$800,000.
- They have upwards of $250,000 of equity in their home and are eager to sell.
Although this scenario sounds good on paper, the reality is that some homeowners are not eager to buy another Southern California home.
Why? Many “move up” or bigger homes in Los Angeles, Orange County, and the Inland Empire cost $1 million to $1.2 million dollars.
Some buyers are questioning if they really need a bigger home and can, in fact, justify the mortgage payment.
The Questions Many Homeowners Are Asking Themselves Right Now
It’s easy to see why a Southern California homeowner would be on the fence right now if they were faced with this situation because they also have to ask themselves the following questions:
“Can I make a lateral move?”
“Can I sell for top dollar?”
“Can I put all of my equity into my next home?”
“Can I accomplish my real estate goals without breaking the bank, in terms of affordability?
If you’re a homeowner in SoCal and are asking yourself these questions or your situation fits the scenario above, we would love to help you!
Our team of experts will sit down with you to help you make a financial lateral move by selling your home for top dollar.
We will then take every penny from the sale of your home and use just that money as the down payment for the next home then make sure your next house payment will not break the bank.
Contact the Fred Sed Group