Inventory Southern California Homes

It’s hard to believe the kind of year the Southern California real estate market has enjoyed. Just one year ago, there was no discussion of inventory issues, or cash-buyers, or multiple-offer scenarios, but things quickly changed during the spring when news of a real estate recovery broke. According to real estate experts, the inventory of available Southern California homes is running low compared to increasing demand.

Part and parcel of this is the fact that construction came to a halt during the recession and housing downturn, and builders haven’t been able to regain their momentum as of yet. Real estate analysts say that the number of available new-home projects has reached a 20-year low, and there are currently just over 400 new-home projects that are actively selling in Southern California.

To put this in perspective, the Southern California real estate market has averaged just over 1,000 new-home projects each year over the last two decades. And during exceptionally busy years, there have been upwards of 1,600 new-home projects available to home buyers. Real estate experts say there are a variety of factors to blame, including planning departments that have been slow to issue permits and allow home builders to put their noses back to the grindstone.

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At 60 percent below the long-term average, real estate analysts say this is quickly going to turn into a problem for interested buyers. As we saw during the first half of 2013, inventory issues challenged buyers, but lined the pockets of sellers with cash when competition dictated multiple offers. Experts say that Southern California needs about 2.5 times more new-home projects in order to keep  pace with the 20-year average.

And buyers would appreciate having more San Diego luxury homes to choose from, especially as we move into the busy spring buying period in 2014. The lack of supply is credited with pushing prices higher and also keeping sales down simply because there are not enough homes in Southern California to satisfy interest. Experts say that new home sales in 2013 only total about 15,000, which is a 58 percent deficit from the average of the last two decades.

San Diego, San Bernardino and Riverside counties have seen the number of new-home projects decline the most, but real estate analysts are hopeful that the good news from 2013’s real estate market will encourage builders to continue their efforts and finish projects in 2014. Whereas over-building in Southern California was once a concern for real estate analysts, these days, it would be a breath of fresh air to have some more inventory for buyers to choose from. There are many unfinished lots that are leftover from the days of the recession, and economists and would-be home buyers are hopeful that builders will revisit these communities. The sounds of hammers would be music to everyone’s ears.


If you’re interested in purchasing a San Diego luxury home, please contact our team of luxury property experts. We would love to assist you with your search!

Homes in San Diego, California between $5,000,000 and $6,000,000

  1. 3 beds, 3 baths
    Home size: 3,714 sq ft
  2. 3 beds, 3 baths
    Home size: 3,714 sq ft
  3. 5 beds, 8 baths
    Home size: 9,471 sq ft
  4. 5 beds, 8 baths
    Home size: 9,471 sq ft
    Lot size: 1.05 ac
  5. 3 beds, 4 baths
    Home size: 4,455 sq ft
    Lot size: 1.36 ac

See all City of San Diego Luxury Homes For Sale.
(all data current as of 10/22/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.