By Jeffery Marino
Since September 2020, when it became clear that the pandemic would not dent the residential real estate market in Northeast Los Angeles, home prices have soared.
Now it appears that the market conditions behind those rising prices will continue even as the pandemic wanes.
In a nutshell, demand for homes in NELA is likely to keep outstripping supply, leading to ever higher prices.
One sign of strong buyer demand is rising home-sales volume. In March, the latest month of full sales data, home-sales volume in NELA increased for the fourth month in a row, rising 36% year-over-year. In all, 304 homes were sold in NELA in March, more than in any other March in records going back to 2012.
Another sign of unquenchable demand is that the inventory of homes for sale was down in March, by 10% year-over-year, even as new listings of homes for sale rose for the eighth month in a row, up 21% year-over-year. Simply put, houses are being snatched up faster than they can be replaced by new listings — a recipe for rising prices.
As for the supply of homes in NELA, it’s unlikely to meet demand anytime soon. At the current pace of sales, it would take a scant three weeks to sell the inventory now on the market in NELA (assuming no new listings are added). In March of 2020, it would have taken over four weeks. Nationwide, it would take over two months to sell out existing inventory.
The market dynamics in NELA are clear: Buyers are plentiful. Houses are scarce. Prices are up.