I recently attended a webinar given by two of California Association of Realtors’ top economists. They presented lots of charts, graphs, and accompanying statistics and I will do my best to boil down the findings and share a few nuggets of numbers and trends that are particularly apropos to the local Palos Verdes and Beach Cities real estate markets as we enter the second half of 2016.
Here are my chief takeaway points:
1) Inventory is still constraining California’s housing market. Most markets have a 3-4 month supply of homes for sale. The exception is the luxury market where available inventory stands at approximately a six-month supply in most markets.
2) California sales are up 2.1% over 2015 sales.
3) Appreciation rate is slowing.
4) 94% of sales YTD are non-distressed. California is in a normal market with only 6% of sales statewide being either a short sale or bank-owned.
5) Qualifying for a loan is still difficult. 30-year fixed rate is approximately 3.5%.
The local market supports the economists’ numbers. Overall, our local market reflects a relatively strong seller’s market. However, the luxury home market (those properties priced at or above $3,000,000) are in a neutral or normal market with approximately 4-6 months of available inventory.