L A South Bay Real Estate

Severe South Bay Home Shortage Developing

Posted on 01. Nov, 2009 by Barry Brickel in Market Forecasts

The total inventory of available homes in the South Bay has been steadily declining. There are not enough homes being put on the market to keep up with the demand. The inventory now is lower than the inventory that occurred during the maximum home price period.  see the graph below:

Even with moderate sales volume the inventory will continue to shrink, The result will be increased pressure in house prices. Home inventory in the less the $500,000 price range is critically low.  With homes incentives being promoted by the government and low interest rates sales volume will continue to be good. Of course all this is dependent on the local economy. We will expand discussion of this issue in the next newsletter.