The following analysis of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.
The counties covered by this report—Los Angeles, San Diego, San Bernardino, Orange, and Riverside—added 164,100 new jobs between February 2017 and February 2018. As a result, the unemployment rate dropped from 4.8% to 4.1%. Employment growth in Southern California continued to pick up a bit as 2018 started, and I anticipate this will continue as we move through the year.
HOME SALES ACTIVITY
DAYS ON MARKET
- The average time it took to sell a home in the region was 43 days. This is a drop of 13 days compared to the first quarter of 2017, and matches the final quarter of 2017.
- Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the first quarter, it took an average of just 28 days to sell a home, which is 5 fewer days than a year ago.
- The biggest drop in the number of days it took to sell a home was in San Bernardino County, where it took 16 fewer days compared to the same period last year.
- All five counties saw a drop in the amount of time it took to sell a home compared to the first quarter of 2017.
The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
The Southern California economy continues to expand, which magnifies demand for all housing types. Mortgage rates—although rising—are still very favorable when compared to historic averages, and low inventory continues to drive prices higher. The number of homes for sale in the region is still well below the levels needed for a balanced market. Given all of these factors, I have moved the needle a little more in favor of sellers.
Mr. Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.