According to the housing research team at Zillow, home prices in the Inland Empire are expected to rise more slowly over the coming months. Even with home-price appreciation slowing, home values will likely continue to rise upward to some degree. Inventory has a lot to do with that. Housing markets like Upland, Montclair, Rialto, San Bernardino, Ontario (among others) still have a shortage of homes. This may carry into and through 2020.
According to many economists, a “balanced” market has around a 5 – 6 month supply of homes. Recent data from real estate brokerage Redfin indicated that several markets within the Inland Empire had only just over a 2 month supply of homes for sale as of May 2019.
Interestingly, the number of “days on market” (DOM) tells a different story. Many markets within the Inland Empire had higher DOM than the national average in early summer. Some of the hottest housing markets in the country had a DOM down to 10-15. So the Inland Empire real estate market is more sluggish, by comparison.
That is somewhat of a paradox. Usually, low inventory levels tend to increase competition among home buyers and accelerate the market. Possibly, home buyers are shying away from higher home prices. After years of steady gains, lack of affordable housing options could be holding these markets back and slowing sales.
A positive for this year’s housing market will be the continuation of last year’s low mortgage rates. Mortgage rates fell markedly last year and are expected to remain low for most of 2020.
Upland – Current Single Family Residence Listings as of 1/3/2020 is 67
Montclair – 4
Rialto – 73
Ontario – 100
Rancho Cucamonga – 159
Fontana – 194