Palos Verdes Houses Supply Issues update There are a lot of opinions on what the future of prices for Palos Verdes houses. Of course there are only three possibilities:
- they will go up
- they will go down
- or they will stay the same
And as I’ve written before, the only thing that affects the prices for Palos Verdes houses is the interaction between supply and demand. On a national level, prices are certainly up as documented by the most recent
Case-Shiller Indexes (see chart to the right). Lawrence Yun, the chief economist for the National Association of Realtors wrote in a recent article that he was not surprised the rise in housing demand in conjunction with an improving economy has caused prices to rise. Pending contracts and closed sales are at a 5 year high and when the rise in housing demand, he says, is coupled with a 13 year low in listing volume, further price appreciation is likely to occur. He further points toward a rise in household formation which will positively impact housing demand. In the article, he poses the question where the supply is to meet this growing demand and for us locally, how will pricing of Palos Verdes houses be effected? He counters the logical argument that supplies of homes will increase due to “…rising prices will unlock underwater homeowners who will add to the supplies…” He argues that while these folks may list their homes for sale, their intent is to move and buy another home resulting in a net wash for inventory levels. Whether or not this is true on a micro market for Palos Verdes houses is something we will just have to wait and see. My hypothesis is that Yun’s argument holds water. I’m observing more and more owners of Palos Verdes houses list, sell and then buy another one of the Palos Verdes houses for sale instead of moving out of the area. Yun’s calculations are that nationally, we are at a 900 million houses in deficit to meet demand.
Palos Verdes Houses Inventory
Note that above, I wrote that Yun observes a 13 year low in listing volume. How does that compare for the South Bay? It’s even worse for the South Bay … 13 years? No, in fact I haven’t seen inventory levels this low in DECADES for Palos Verdes houses or South Bay homes Would you like search Palos Verdes houses for sale and homes for sale in South Bay? Use this easy map based search engine.
And to really get into the guts of supply and demand for
Palos Verdes houses and South Bay homes go here //
+George Fotion George Fotion on Google+ George Fotion, HomeIsPalosVerdes.com original content located here:
http://www.homeispalosverdes.com/palos-verdes-houses-supply-issue-update/
