For the first time in 2 years, the number of home sales during August 2018 in Los Angeles fell below 400,000.
Closed escrow sales of existing single-family detached homes totaled 399,600. This number of sales represents a decrease of -1.8% from July and a decrease of -6.6% y/y.
According to Leslie Appleton-Long, the senior vice president and chief economist with the California Association of REALTORS® (CAR), the steady rise in home prices is a primary factor in this sales decline. “We’re seeing active listings increasing and more price reductions in the market…so…the real question remains, ‘How long will it take for the market to close the price expectation gap between buyers and sellers?’”
Please refer to Podcasts produced by Tim and Julie Harris that summarize the predictable phases of a resetting housing market. These phases will “hit” your local markets as well as your local micro-markets at different times. The keys here are to first look for, recognize and pay attention to the signs Tim and Julie have highlighted and to be proactive about developing the skills and tools you will need to be successful in this currently resetting housing market.
The podcasts are
Take time with these podcasts. And, schedule a coaching session to help you get on with your action plan.
Regionally, Southern California saw sales decline -8% y/y in August. Sales in San Diego fell -10% y/t, Orange County saw declines of -10.4%; and Los Angeles sales fell -8.9% respectively.
Meanwhile, housing inventory in the state is climbing…months of remaining inventory (MRI) rose from 2.9 months to 3.3 months of supply year over year.
The median days on the market rose from 18 to 21 days y/y.