Fracture in the Market
The Spring Market is typically the hottest time of year, but this season, signs are pointing to a sharp cooldown across Los Angeles County. Cracks are forming in the housing landscape as inventory surges and demand continues to weaken.
Key Highlights
1. Inventory is Climbing Fast
Active listings are up 18% (1,975 homes) in the past two months—outpacing last year’s 15% increase. More homeowners are listing their homes as the “lock-in” effect from low mortgage rates starts to fade.
2. Buyer Demand Remains Soft
Despite mortgage rates sitting lower than last year (currently around 6.82%), demand is down 3% year-over-year. Affordability concerns and shaken consumer sentiment—partly due to recent tariff announcements—have led many buyers to step back.
3. Homes Are Taking Longer to Sell
The Expected Market Time (days to go pending) jumped from 90 to 107 days in just six weeks—the slowest pace for late April since the 2020 lockdown. This reflects the growing gap between supply and buyer activity.
4. It’s Not Just LA—It’s Regional
All Southern California markets tracked are experiencing the same trend: rapidly rising inventory, sluggish demand, and increased time on market. The "hunkering down" phase is ending, and seller competition is ramping up.
What This Means for You
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Sellers: Pricing accurately is now more critical than ever. Overpricing may lead to extended market time and eventual price reductions.
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Buyers: While competition has eased slightly, affordability challenges remain. Now is a time for strategic offers and negotiation.
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Market Outlook: Expect continued inventory growth and a slower pace as we head into summer.
Have questions about how this market shift affects your real estate goals?
Let’s talk strategy. Contact Hamid Koochak
