How is the housing market now in terms of the numbers?

3/3/25

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SoCal home prices are up 7.75% on average for the year based on CRMLS data for Los Angeles, San Bernardino, Riverside, and Orange Counties.

Prices:

Prices rose overall in January and February, and they remain close to all-time highs. San Bernardino County had the strongest appreciation in the last year with a median price up 10%, and Riverside County had the weakest with a 5% gain over last year.

Inventory:

The number of available homes dropped in February. That’s typical for this time of year. February and March tend to be the lowest inventory months in our region. Overall, inventory is up about 15% compared to this time last year.

Time on market:

The pace of home sales held steady in February with half the homes selling in 27 days or less. That’s a little slower pace than last year when half the homes sold in 23 days or less.

Supply from sellers vs. demand from buyers:

The relative strength of buyers versus sellers moved just slightly toward the seller side in January and February. Buyers still outnumber sellers, but it’s cooler right now than it was last year. Months of inventory measures supply relative to demand. Declining months of inventory mean the market is heating up, and as it rises, the market is cooling down. At 3.2 months of inventory on average, this is a fairly hot market. We’d need almost double the inventory we currently have to balance out the current demand.

What this means for sellers:

Well-priced homes are still likely to receive multiple offers and get strong prices relative to recent comparable sales, but probably not as dramatically. Since the market is a little cooler compared to last year, there’s more risk of accidental overpricing.

What this means for buyers:

Buyers should be prepared for competition on well-priced, good-looking homes. Under these conditions, prices typically still rise, so I don’t expect a big drop in prices in the near future. However, it’s becoming more common for some sellers to accidentally overprice, which opens opportunities for buyers to negotiate more favorable terms with less competition.

If your current home doesn’t support your current life and goals, we’re here to help you find one that does. Call or text us at 626-328-4199 to learn about your options!