Redfin expects inventory in California communities threatened by wildfire to worsen
Growth in home prices was strong in November as the number of homes for sale declined for the 26th month in a row, according to Redfin.
Home prices were up 7.8% from November 2016, while inventory fell 12.8% over the same period.
As California counties continue to face the effects of wildfires, Redfin said displaced families find it challenging to purchase another home nearby. Hundreds of homes in parts of Los Angeles, Ventura, and Santa Barbara counties were destroyed or remain under threat from the fires, further worsening the inventory shortage in these counties.
Although there was a 1.1% increase in the number of home newly listed for sale during the month, the total was not enough to put a dent in the continuing inventory shortage. Redfin said November had 3.1 months of supply, with homes typically spending 46 days on the market. This is four days fewer than in November last year.
“Overall, 2017 has been an uneven year for home sales. The year started out strong, but a combination of low inventory and weather events overtook sales growth; sales have been flat to declining in six out of the past 11 months,” Redfin Chief Economist Nela Richardson said. “The good news is markets have been quick to recover from severe weather events, even as challenges remain. For example, Houston home sales were up 4.3% in November from a year ago, and Tampa sales were up 6.1%. We are hopeful that Southern California markets show the same level of resilience in the aftermath of wildfires there.”
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Home prices were up 7.8% from November 2016, while inventory fell 12.8% over the same period.
As California counties continue to face the effects of wildfires, Redfin said displaced families find it challenging to purchase another home nearby. Hundreds of homes in parts of Los Angeles, Ventura, and Santa Barbara counties were destroyed or remain under threat from the fires, further worsening the inventory shortage in these counties.
Although there was a 1.1% increase in the number of home newly listed for sale during the month, the total was not enough to put a dent in the continuing inventory shortage. Redfin said November had 3.1 months of supply, with homes typically spending 46 days on the market. This is four days fewer than in November last year.
“Overall, 2017 has been an uneven year for home sales. The year started out strong, but a combination of low inventory and weather events overtook sales growth; sales have been flat to declining in six out of the past 11 months,” Redfin Chief Economist Nela Richardson said. “The good news is markets have been quick to recover from severe weather events, even as challenges remain. For example, Houston home sales were up 4.3% in November from a year ago, and Tampa sales were up 6.1%. We are hopeful that Southern California markets show the same level of resilience in the aftermath of wildfires there.”
Related stories:
Rising home values drive homeowner equity gains
October home prices rise 7% – CoreLogic
