Which markets are burning the hottest this month? In California there are a total of 12 markets in the top 20 and Los Angeles ranks in number 17. Winter usually sees a freeze in the housing market but with demand high and inventory low, homes are selling 4% faster this month than the same time last year. There is a good and bad to this strong off-season though. But first, why is this happening?
The threat of rising interest rates is one reason. The expected increase is making buyers anxious to purchase a home before the mortgage rates rise any higher. Surging demand from first-time buyers is also putting pressure on the housing market.
All this demand is shrinking the supply of homes on the market. We’re expecting to see a 9% decrease in listing inventory this month which is an 11% drop from the same time last year.
This is all great news for Realtors, as winter is usually a slow season, so all this increased demand is keeping everyone busy. The downside to this strong off-season market is that there will be a lower volume of available homes for sale and a new high for prices, according to Chief economist Jonathan Smoke of realtor.com.
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