The following analysis of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
The counties covered by this report—Los Angeles, San Diego, San Bernardino, Orange, and Riverside—added a very modest 47,400 new jobs between August 2017 and August 2018. Even as job growth slowed, the unemployment rate dropped from 4.9% to 4.4%. Employment growth in Southern California has started to taper, due primarily to a slowing in employment gains in the large Los Angeles County market. As it stands today, I expect employment to continue growing for the balance of the year, but at significantly slower rates than in recent years.
- The average time it took to sell a home in the region was 39 days. This is a one-day increase compared to the third quarter of 2017, and two days more than in the second quarter of this year.
- The biggest drop in days on market was in San Bernardino County, where it took three fewer days to sell a home than it did in the same period last year.
- Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the third quarter, it took an average of 27 days to sell a home, which is one day more than it took a year ago.
- Three counties saw an increase in the length of time it took to sell a home when compared to the third quarter of 2017.
The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
The Southern California economy, although still adding jobs, has started to slow. The number of homes for sale in the region is on the rise, which gives buyers more choice. This is reflected in lower sales velocities and tapering home price growth. Given all of these factors, I have moved the needle a little more in favor of buyers
Mr. Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.