Selling in Scarcity: The Advantage of Limited Home Inventory in Los Angeles and Beverly Hills
Selling in Scarcity: The Advantage of Limited Home Inventory in Los Angeles and Beverly Hills | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Contemplating the idea of selling your house in today's real estate landscape? The resounding answer remains a resolute "yes." Particularly when you consider the striking scarcity of homes available for purchase at the moment.
You've likely heard murmurs of low housing inventory, but the full extent of this scarcity might not have fully registered, nor the advantageous implications it carries for prospective home sellers. This insightful graph sourced from Calculated Risk provides an illuminating glimpse into the situation:
As illustrated in the graph, there has been a modest uptick in housing inventory from week to week, as indicated by the blue bar. Yet, the overall supply remains markedly low, as depicted by the red bars. Comparing the current week to the same period last year, inventory has plummeted by around 10%—and it's crucial to note that even back then, supply was already classified as limited. Delving deeper into historical data, it becomes apparent that inventory has undergone an even more substantial decline.
To truly comprehend the extent of deviation from a standard housing market, let's juxtapose the current state against 2019, a benchmark year characterized by market equilibrium. When we compare the identical week in the current year with its counterpart in 2019, the available supply is now approximately 50% lower. In essence, there are now just half the number of homes on the market compared to the norm.
The central takeaway? We're still far from attaining a balanced market. Demand for housing remains robust, predominantly because the existing housing stock is woefully inadequate to meet this demand. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), succinctly captures the situation:
"The scarcity of homes for sale is a clear and pressing issue. The market is more than capable of accommodating a twofold increase in inventory."
Hence, if you're contemplating listing your house, recognize that the current inventory levels are approximately half of what they would be in a standard year. Consequently, your property would undoubtedly bask in the spotlight should you opt to sell now, possibly garnering multiple offers and facilitating a swift home sale.
In Conclusion, given that the available homes for sale currently hover at about half the customary quantity in a typical year, it's reassuring to acknowledge the sustained demand for your property. If you're inclined to sell, it's an opportune moment to establish contact. By doing so, your property can radiate above the competition, capitalizing on the scarcity of inventory. And what's more, let's not forget the distinctive allure of the vibrant housing markets of Los Angeles and Beverly Hills, California, which add a unique layer of desirability to your property's appeal.