The home appreciation numbers just came out for end of May compared to a year ago with numbers that will shock you. Single Family Home prices in LA county went up 31% in one year. Inventory has dropped by 27.6% compared to last year this time which explains part of the drive with home prices. Sales have increased 131% from last year.
The pandemic has created the need for people to want a comfortable home to spend more time in for work and family life. Many more families want a backyard which puts a higher demand on homes compared to condominiums. Even post pandemic, people see themselves working part time out of their home creating a need for that extra one or two bedrooms. The lower interest rates has also added to the demand pushing prices up 31%
The inventory has dopped 27.6% from last year because people are moving less. Some people don’t know if they will be successful in finding a new home and opt to not make a move. This trend has taken hold over the last few years.
The sales volume has increased 131% because last year was the lock down. Even thought housing was exempt from the lock down, home sellers last year did not want anyone walking through their home. Those concerns with many people vaccinated are no longer prevalent.
These changes over the last year have put pressure on prices and relief wont come anytime soon because of the low interest rates will keep driving demand.
Home prices in many areas in the country and locally have been surging in this hot market. There are implications for homeowners that give them many options even if they do not want to sell. Renters all have seen rents on both sides of the scale. Understanding why prices are surging is helpful to see benefits and challenges as a result.Read This Post
Did you know the supply of homes has dropped by 1/6 compared to years past when there were more homes from which to choose? As inventory decreased, the number of buyers increased. Many sellers were too uneasy due to of the pandemic to put their home on the market.Read This Post