Across the U.S., the housing market is continuing to rebound. The National Association of Realtors says first-time home buyers helped fuel housing sales in May to the highest rate in six years.
Here in Southern California, the market for buyers has also made a strong comeback in recent years, and while this has helped home prices continue to rise with demand, there are some current concerns among market-watchers about the housing supply. Last month, the California Association of Realtors said that the low supply has a lot to do with homeowners choosing to stay up rather than start over as buyers, so homes that might otherwise go up on the market just aren’t there. High demand and low supply means higher prices for those looking to sell their homes, and while that’s good for people who can afford to be buyers again, it’s not so great for people like renters who are trying to save up for a down payment on a house but are struggling to keep their savings at pace with rising home prices.
Is now a good time to be looking to buy a house in Southern California, if you can afford it? What does the rest of 2015 hold for the real estate market? What are some of the market factors that will be at play for the remainder of the year as potential buyers look for homes? How is the Southern California housing market looking compared to a year ago? To two years ago?
Raphael Bostic, Judith and John Bedrosian Chair in Governance and the Public Enterprise at USC’s Price School of Public Policy
Stuart Gabriel, professor of finance and Arden Realty Chair at the UCLA Anderson School of Management and the director of the UCLA Ziman Center for Real Estate