In many areas it most certainly is, driven primarily by short supplies. However, a broad brush attempt to label a real estate market is a slippery slope. Recently I took a deep dive into many micro markets in my immediate area, and found a broad range of supply, from 0.7 months to 6.5 months of inventory. It really depends on your immediate area, as not all micro markets experience the same dynamics. Insist that your agent be able to tell you exactly what your market is doing, and if they cannot, call me…I can do it.
THIN HOUSING SUPPLY CONSTRAINS CALIFORNIA HOME SALES IN APRIL
While sales remained above the 400,000 benchmark level, California existing home sales fell from the previous year in April as tight housing inventory continues to impede the housing market, according to C.A.R. April marked the second worst start to a spring home-buying season since the housing recovery began in 2009.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 406,800 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.
The April figure was down 2.6 percent from the revised 417,580 level in March and down 5.4 percent compared with home sales in April 2015 of a revised 430,030. The year-to-year decline was the first in five months and the largest sales drop since August 2014.
An imbalance between supply and demand pushed the median price of an existing, single-family detached California home 5.3 percent higher in April to $509,100 from $483,280 in March. April’s median price was 5.1 percent higher than the revised $484,370 recorded in April 2015. April marked the first time in nine years that the median price has risen above the $500,000 level; it is still below the pre-recession peak of $594,530 reached in May 2007.