As leading Certified Residential Real Estate Appraisers in California’s Inland Empire, Hosking Appraisal Group spends a great deal of time researching trends and predictions in southern California’s housing market. We believe that knowing and tracking the price trends in the areas where we work is paramount to keeping our thumb on the pulse of the housing market. We research and share resources that can help us, our clients — and other visitors to our site — make more confident and secure decisions when considering real estate options and opportunities.
The Latest on Housing Market Trends
The past few years have seen astronomical growth in real estate. It’s been a sizzling hot market with record low interest rates and record high home prices. Market inventory has also been historically depleted. However, change is in the air …
Interest rates are on the rise and inventory is loosening up. Yet fewer people are in the market for a new home. One reason may be that elevated home prices combined with higher interest rates (and record-high gas prices, especially for commuters) have made home buying unaffordable for many SoCal residents.
Homes are also staying on the market longer, which means fewer bidding wars and signs of a decline in urgency to buy. This recent article in the LA Times reports that nearly 30% of homes in the Los Angeles market had price cuts in June of 2022. In the Inland Empire, nearly 19% more homes were on the market in June 2022 compared with that same period the year prior. Homes are staying on the market longer and month-to-month inventory continues to expand.
Whether these trends indicate that home values will decline or simply that the rate of home appreciation will slow remains to be seen. But keep in mind that there is still a shortage of housing in Southern California and a lot buyers who are actively in the market to purchase a home. There is no cut and dry answer to what the future holds, but we’ll continue to track this increase in supply and decrease in demand in the ever-changing southern California real estate market.
Links to Vetted Articles
Here are a few other articles we’ve discovered that may be of interest to you:
“Current Sales & Price Statistics”, California Association of Realtors (June 2022)
For more posts on the Inland Empire’s housing market and what to expect during a property appraisal, please visit our blog.