Despite today’s low numbers reported by NAR for the quantity of homes sold in January, the time to sell the existing housing stock is generally quite low.
Here’s a quick look at the amount of time it takes to sell a house in Los Angeles – currently about 60 days. Days on market (DOM) is an important measure when trying to understand how much demand there is from buyers. According to Altos Research data, homes in LA are now spending even less time on the market than in the past few years, which were already pretty strong.
This evident demand stands in contrast to January’s existing home sales number. It implies that the sales volume in January is more a function of supply than demand. There may be evidence that some demand is shelved until conditions change. That bodes well for prices, if not for total sales count.
More details on Altos Research data for Realtors and Brokers