A “Normal” Market
The crazy pace of the housing market has come to an end and the instant marketplace has shifted to a much more normal, typical speed for this time of year.
INVENTORY PLUNGE
The active listing inventory in the past couple of weeks dropped by 382 homes, down 3%, and now totals 10.730 homes, establishing a peak for 2022 two weeks prior. In August, there were 20% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 1,651 less. Last year, there were 8.300 homes on the market, 2.430 fewer homes, or 23% less. The 3-year average prior to COVID (2017 to 2019) was 13,084, or 22% more.
DEMAND INCREASES
Demand, the number of pending sales over the prior month, increased by 49 pending sales in the past two weeks, up 1%. and now totals 4,327. It is still the lowest start to September since tracking began a decade ago. Last year, there were 6,248 pending sales, 44% more than today. The 3-year average prior to COVID (2017 to 2019) was 5.363, or 24% more.
CLOSED SALES DOWN 32% YOY
There were 4,604 closed residential resales in July. 32% less than July 2021's 6,793 closed sales. July marked a 18% decrease from June 2022. The sales to list price ratio was 101.2% for all of Los Angeles County, Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.19%. That means that 99.7% of all sales were good ol' fashioned sellers with equity.
