Part I:  Sellers in this market are not just “the star of the show,” a listed property IS THE SHOW. 

 Fact: The housing “for sale” inventory is the lowest point since 2018. As an example, in the South Bay market there is only a 2-month supply of homes on the market. Historically, a healthy market is a 6-month supply.

Fact: The median price in the South Bay has slightly increased from 870k in the beginning of 2023 to $895k in April 2023. The national headlines about price drops are just that “national” not “local.”

Fact: Interest rates are slightly down from late 2022.  According to Freddie Mac, “The 30-year fixed-rate mortgage averaged 6.39 percent this week, as economic crosscurrents have kept rates within a ten-basis point range over the last several weeks. After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to rise modestly over the last few months. This indicates that while affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership.” https://www.freddiemac.com/pmms

Fact: Multiple offers are still being made, showcasing the fact that there is an abundance of buyers, but not enough properties. The abundance of buyers are keeping upward pressure on home prices.  And, yes… overbidding is happening.

Fact: Developers are buying again. With the shortage of properties, developers have begun buying.  Developers purchase for a post-development sale in 18-24 months.  Developer buyers exited the market in late 2022.  They are back and optimistic about the market over the next 1 to 2 years.