For All Your Real Estate Needs!
Navigation Menu+

Los Angeles Homes for Sale are at an all time low. Why is that?

Posted on Jan 7, 2013 by in Active Rain | 0 comments

Los Angeles homes for sale are at an all time low. Why is that, you ask? Great Climate, Land of Opportunity is that the reason?

los angeles homes for sale Endre Barath

Los Angeles Homes for Sale are at an all time low. Critical shortage of home inventory is a problem for buyers, their agents and the sellers as well, if they are considering buying up.  Only sellers who move out of area are not affected, since they decided to move out of the Los Angeles area and have somewhere to go.

Los Angeles home selling requirements Endre Barath

 What are the causes of the shortage? This shortage of inventory is caused by a multitude of factors: 1. Of course is that interest rates have been artificially kept low to an almost unbelievable sixty (60) year low and buyers can get great deals when it comes to loans, 2. Buyers have realized that “the bottom” has been reached, 3. The elections are over no matter who you were supporting and it does not matter if your candidate lost or one. The important fact it is that the uncertainty is over and done with, 4. The Media is now writing positive news about Real Estate, hence fueling the buying surge. As an example this was in yesterday’s Los Angeles Times (,0,6997483.story ) 5. The most important reason for the shortage is “underwater home owners”    as long as sellers have little or no Equity in their home, they cannot sell and become move up buyers.

distressed homes for sale in Los Angeles, Endre Barath

Why are sellers not listing their homes for sale you might ask? The answer is not a mystery; Lenders have tightened up the ability to get a Home Loan. Buyers need to have real down payments to buy a home. Let’s be realistic most of the current home owners who are upside down came and bought a home with little or no money down. Let me clarify it, at least in the Greater Los Angeles the majority of the potential sellers fall into this category. Hence even if they become “Standard Sellers” vs.” Short Sale” or as some people call them “Distressed Sales” they are in no position to buy. They only have two options: 1. to stay in their home or 2. Become Renters again.

los angeles homes for sale Endre Barath

So you ask: what is the solution? Well stay tuned that is another blog post for a future date.


If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at or visit one of my websites at Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.




Submit a Comment

Your email address will not be published. Required fields are marked *