Shrinking Supply of Homes: Sellers & Buyers Are Happier!

This likely comes as no surprise to those of you who are out there as buyers, but homes throughout Los Angeles are being sold through bidding wars.

The bidding wars for the best homes often lead to the home selling for much more than its initial list price.  A recent LA Times article discusses how the inventory of homes on the market this summer in Los Angeles is much less (i.e. about 49% lower) than it was last summer, while 24% fewer homes are listed across the nation this summer when compared to last summer.  This may seem odd to you because most would agree that the fundamentals in the economy were not stronger than today.

http://www.latimes.com/business/realestate/la-fi-harney-20120729,0,308220.story

This is good news for both Sellers and successful Buyers in today's market.  Sellers are happier because this means that their homes are appreciating in value.  Successful Buyers are happy for the same reason. Given the strict underwriting standards of Lenders, the fundamentals for your home's appreciation are real.

As we go into the final stretch of the summer, feel free to contact me if you want to sell your home or if you want to win a bidding war for your dream home.  marcelanderson@kw.com and 310-482-2414.