AgentMarkets & Economy

California’s low housing inventory squeezes affordability

Realtors fear the coming months won't see the same boost as they have in years past
  • The number of pending home sales in California increased 4.1 percent year-over-year on the Pending Home Sale Index (PHSI).
  • The Santa Clara and Monterey regions experienced the most growth in pending sales at 13.7 percent and 15.8 percent, respectively.
  • The only market that did not see year-over-year increases in pending sales was Sacramento, dipping 0.2 percent.

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The California Association of Realtors released its monthly report detailing the state of affairs, with California experiencing a tight supply in inventory that is affecting housing affordability. C.A.R.'s April Market Pulse Survey, which relies on feedback from 300 California Realtors, showed a decline in listing appointments and open house traffic. The survey based its findings off Realtor opinions about the near future. One of the biggest concerns revealed in the monthly survey showed Realtors' fears with the staggering inventory. Others' worries were focused more on housing affordability and overinflated home prices -- two key factors in a declining inventory. A recent Quicken Loans report on the House Price Perception Index (HPPI) showed that homeowners on the west, specifically in San Francisco, Los Angeles and San Diego, mostly undervalued their homes. Pending sales by region The number of pending home sales increased 4.1 percent year-over-year on the Pendin...