It’s no secret that housing inventory is low everywhere. Interestingly though, it’s been in decline since the second half of 2019 – well before the pandemic began. In the graph below, the green bars represent New Active Listings, while the blue are Sales. New Listings were dropping as we entered 2020, and then bottomed out in April and May last year. At that time, demand was also low due to great uncertainty at the onset of lockdowns. Demand began to rise again in the summer of 2020 but inventory could not keep pace, as you can see. And the disparity in sales to new active listings as of this May is wild.
As demand continues to outpace supply across California, it is most notable in the Central Coast. Here, demand is up 11.8% – more than any other region in the state! And on the flip side, our inventory has gone down 52.5% – more than any other region in the state. There are likely many reasons for this phenomenon, not the least of which is the extreme desirability of the Central Coast. Seems like everyone is waking up to it!