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Understanding the Impact of Home Sales on the Housing Market

Saturday, January 13, 2024   /   by Robert Ortega

Understanding the Impact of Home Sales on the Housing Market

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I conducted an email campaign about home sales in a specific suburb of Los Angeles, leading to several inquiries from clients about the impact of these sales on the housing market, specifically concerning the selling and buying of new a home. 

I wanted to share some insights into how home sales significantly impact the housing market. 

Firstly, home sales are a primary indicator of the health of the housing market. High sales volumes often signify a strong market, driven by factors like low interest rates, economic stability, and consumer confidence. Conversely, a decrease in home sales can signal a weakening market, potentially due to higher interest rates, economic downturns, or lack of affordable housing.

Secondly, the volume of home sales affects prices. Generally, a high demand with a limited supply of homes leads to price increases, benefiting sellers. On the other hand, if the market is saturated with properties and buyer demand is low, prices may fall, favoring buyers. This dynamic plays a crucial role in shaping the overall housing market trends.

Moreover, home sales influence the construction industry. Increased sales often lead to more home construction projects to meet demand, stimulating economic growth and employment. Conversely, a slowdown in sales can lead to a reduction in construction activity.

Lastly, home sales also impact related industries such as real estate services, home furnishings, and mortgage lending. These sectors often experience growth when home sales are robust and face challenges when the market slows.

Understanding these dynamics is crucial for anyone interested in the real estate market, whether as a buyer, seller, or investor. If you have any questions or would like to discuss this further, please don't hesitate to reach out.

Click the graph below for your city and neighborhood insights (LA County Only)


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About the author
Robert Ortega, boasting over 20 years in the real estate sector, is deeply passionate about his career and contributing to the community. Specializing in probate real estate and dealing in residential, multi-unit, and luxury properties. When not immersed in real estate, Robert delights in outdoor pursuits and values quality moments with friends and family.

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Certified Probate Expert - Real Estate Sales - Residential | Luxury | Property Management
Robert Ortega
26650 The Old Road
Valencia, CA 91381
DRE# 01167918
11812 San Vicente Boulevard
Brentwood, CA, 90049

Based on information from California Regional Multiple Listing Service, Inc. as of June 24, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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