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The volume of homes on the market is down, but so is the number of buyers due to interest rates still hovering around 7.0%.
Forecast for second half of 2023 (source Steven Thomas, Reports on Housing):
- The housing market is NOT crashing and home prices are NOT going to fall.
- Interest rates will inch down a bit in August, causing a boost in demand (more people looking to buy a home).
- Homes listed for sale will remain muted as 84% of Californians are locked into a rate of 5% or below; there are 20,260 homes for sale in all of Southern CA (LA, OC, & SD) compared to 41,233 pre-Covid.
- Homes under $1.5M will continue to sell for over asking, if priced correctly. The share of homes sold for over asking price is over 50%, the highest in 11 months, due to low inventory.
- 2024 will likely start with the lowest inventory on record in Southern California.
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