Home prices in LA are still sky high and climbing, but sales have slowed down for the second month in a row, according to a press release from realtor John Graff.
Pending sales in the month of August dropped 35 percent from the same period in 2015. Meanwhile, the supply of houses on the market rose 56.7 percent over last year, giving the city 4.7 months of total supply.
That’s a bit under the six months of supply that typically indicates a healthy market, but it’s a whole lot more than what potential buyers have had to work with in the past. As recently as June, the city had less than three months of supply.
So what’s going on? Graff suspects that sellers eager to cash in on a hot market have flooded it with less than stellar homes that come with overly optimistic asking prices. "[W]ith more and more sellers trying to test the waters with under par and overpriced homes, buyers aren’t biting, and with nowhere to go all but the most desperate sellers just aren’t budging," Graff says in the release.
For now, it seems that buyers and sellers are locked into an intriguing game of chicken. It remains to be seen how much longer prices can continue to go up with less and less buyers willing to shell out for homes they don’t love.
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