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Teaching a teenager to drive in Los Angeles is not for the faint of heart. At any given moment, there are a dozen things to keep track of—watch your speed, dodge the car sticking out of the turn lane, pull over for the ambulance, avoid the jaywalking pedestrian, and give ample distance to the pack of teenagers zipping by on e-bikes. And that’s before we even touch the freeway!

My son officially started driving solo in May and is learning the ropes quickly. His record so far? One parking ticket—earned alongside three of his friends after they all parked on a Torrance street during sweeping hours (apparently none of them spotted the posted signs). On the plus side, he also “helped” a woman at a gas station by filling up her tank after she said her wallet was stolen…a lesson in street smarts that cost him a few gallons of gas.

It struck me that driving is a lot like navigating our real estate market—you can’t control the traffic or the hazards, but you can watch for signs and plan your route. Right now, the South Bay market is flashing a few big indicators:

• Inventory is up—way up. Since January, available homes in the South Bay have doubled. In real estate, housing prices are strongly influenced by supply and demand. Right now, buyers in our market have more choices and sellers face more competition. We are seeing sellers’ lower prices or offer incentives to attract buyers.
• Mortgage rates are less volatile. “Mortgage rates have moved within a very narrow range for the past few months …Rate stability, improving inventory, and slower house price growth are an encouraging combination.” Sam Khater Chief Economist Freddie Mac. Based on what economists are saying, mortgage rates will continue to stay in the 6.5% range. It is predicted there may be some small dips throughout the remainder of the year.
• Housing prices are holding. In the South Bay although we are seeing a significant increase in inventory, we are still impacted by a shortage in housing, which keeps pressure on prices. This is why you won’t see a dramatic drop in prices. Sellers do need to be realistic and acknowledge the shift when setting a sale price.

Just like teaching a teen to drive, the key to navigating this market is to stay alert, read the signs, and know when to tap the brakes—or hit the gas. If you’re wondering what the current signs mean for your buying or selling plans, I’m here to help you map out the smoothest route. Call, text, or email me anytime, and let’s plan your next move with confidence.