Is inventory rising quickly in your area?
I was chatting about the real estate bubble with two friends at work today, both residents of 90064, showing them my charts, and they've commented about how they've suddenly been seeing more properties for sale, say, in the last 2-3 weeks. A "beach cities" query (90245, 90254, 90266, 90277, 90278) on Zip Realty has shown me that inventory is up around 18% in the last 2-3 weeks.
The rise in inventory is due in part to school ending and people wanting to relocate their families over the summer. But the big question is, will there be enough buyer demand to keep the market enjoying "healthy appreciation", as realtors like to put it?
(I'm not sure what "unhealthy appreciation" is.)
Have you been seeing explosive inventory growth in your zip codes?
posted by bearmaster at 10:44 AM
2 Comments:
in westwood i've noticed a slight uptick in for sale signs/open houses, and even some price reductions. i was out in some of the canyons in malibu a month or so ago and was blown away by the number of for sale signs. it seemed like at least 1 out of every 10 homes was for sale.
Rising inventory? Yes, absolutely. Los Angeles has not yet seen as severe a slowdown as other parts of the country (Florida, Vegas, Phoenix, Boston, San Diego, Sacramento, etc.) but that doesn't mean it's not on the way. Rising inventory is the first phase, and these things play out over a number of years. IMO, the peak was seen the second half of last year in the South Bay and we're headed for a significant double-digit price correction over the next 3-5 years. If you're a potential first time buyer my advice would be to wait at least a year or two before even looking at properties.
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