Why Homes Sales are Falling, Yet Prices are Rising - Market Report - Long Beach - March 2014
There are a ton of variables when it comes to ascertaining the housing market and predicting where it is going. The last few months have shown double digit drop in the number of sales from the sale month the previous year. On the other hand the prices have increased in the double digits for 23 consecutive months in the double digits from the same month the previous year.
There is a definite drop in the the affordability index, meaning fewer and fewer people are able to purchase in the souther California area. The interests have gone up just half a percent from last year but it is the increased prices that are squeezing people out of the market.
Lack of inventory is still the hot topic of conversation among Realtors and their buyers, which is helping to sustain what is definitely a sellers' market.
My opinion or prediction is that the real estate market will not rise or fall significantly this spring and summer - we will "muddle through" as Roger Hance, president of the Van Nuys-based Southland Regional Association of Realtors.
As I have always said, life goes on. People marry, have babies, retire, change jobs and pass away. The market may change from year to year but the fact is, the time to buy and sell is often, just that; the time to buy and sell.
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