L A South Bay Real Estate

Homebuyer Demand Outpaces Supply

Posted on 04. Jan, 2010 by admin in Market Forecasts

Home Inventory is one of our most important Indicators which help predict the direction future of prices in the LA South Bay. The available South Bay Home inventory is now at the lowest point since December 2005. Supply cannot keep up with Buyer demand, the result will mean accelerating higher prices. The LA South Bay Total Inventory is now at 1419 units. Preliminary results for December 2009 indicate 543 units were sold. At that rate the inventory will be depleted in

In other words, what this means is 543 new units must be replaced into inventory next month to keep the inventory at current levels, new listings are not coming on the market at that rate.

The lower chart  illustrates from the results from above showing that we are entering levels of the very hot market boom From 1996 to 2005. The Very hot market during that time period occurred when the Unsold Index fell below two months. We are now poised to go in that direction. January may provide us with a seasonal surge of new Inventory which might delay the inevitable.

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