Resi listings are up in LA County, but buyers are staying home
Lower mortgage rates may be prompting a flood of new listings, well about the 7-year average
Listings across Southern California shot up over the last year, but homes are sitting on the market far longer.
The latest data from local market tracker ReportsOnHousing shows 18 percent more listings in Los Angeles County as of May 30 than a year earlier, according to the Los Angeles Daily News.
In total, there were 13,650 active listings in L.A. County, according to the report. The average since 2012 have been 12,470. The increase in listings could be from sellers looking to cash in on high pricing and low mortgage rates. Uncertainty about the housing market’s future could also be fueling listings, experts say.
But it is clear that fewer potential buyers are pulling the trigger — the number of homes that went into escrow last month was 1 percent lower than did last year. The average number of days a home spent on the market is now up to 73 days, up from 60 days last May.
Pricing in L.A. County has more or less stagnated since peaking late last summer.
Interest rates rose last year, prompting some buyers to put off a big purchase. Mortgage applications hit a four-year low in November, but the recent drop in rates could lure those same buyers back to the market. Falling rates have also coincided with more homes flips, as homeowners see a window of opportunity.
The story across the Southern California region is similar to L.A. County, although escrows across the region rose just under 1 percent over the last year. Some individual counties are seeing more drastic movement. The numbers were gloomy in Orange County. The number of listings rose 27 percent, market time was up 19 days to 85 and sales were down 1 percent, according to the report. [LADN] — Dennis Lynch