Los Angeles & South Bay July 2019 Housing Market Update - Flat Median Prices - Increased Inventory
Keller Williams real estate Broker Mike Weber discusses where the Los Angeles Country and South Bay Beach Cities real estate market is currently at for the beginning of August 2019. Find out what's happening with median homes prices, inventory levels, and the number of closed sales in both of these areas.
Even though we saw a dip in median homes prices last month, year over year, for Los Angeles County as a whole, this month prices have swung to the upside, likely resulting from the incredibly low mortgage interest rates over the last few months. Lower interest rates help to boost sales and allow buyers to afford more house than they could before. South Bay median homes price have actually fallen moderately year over year, even with reduced interest rates in the market.
Inventory in both areas remains unchanged but is markedly higher than last year. Since it's unlikely for mortgage rates to fall much lower, and since inventory is still relatively high, I suspect inventory will continue to grow in the short run, as the effects of lower rates will eventually wear off and many buyers will still be priced out or choose to wait on the sidelines to see what the future holds as the economy continues to show signs of weakness in other sectors.
Closed sales also remained relatively stable over this last period and are similar to 2018 levels, which were generally lower than previous years. This slight uptick in sales is likely a result of the lower rates in the market and the fact that we're now in peak selling season.