The increase in home prices created the affordability squeeze. Many homeowners planned to sell and move up or downsize but now they are putting those plans on hold. High home prices and low inventory contributes to the sellers hesitation - they are affraid that they won't be able to find a suitable replacement once they sell their home. This further reduced the inventory of available homes which pushes prices further up.
Furthermore, many buyers are rushing to beat the Fed that is expected to raise interest rates in the coming months, possibly next month. If that happens, the pool of buyers will be reduced and it may bring the home prices down or at least slow the price increases.
If you're thinking about selling or buying in the South Bay area, please contact Krystyna Baty at (310)918-5027- your experienced South Bay Realtor - with any questions re. our real estate market, FREE home evaluation and current availability. You're welcome to use this website to search ALL homes - listings are updated hourly - no old or expired/sold listings here!