In California housing market, demand still far outstrips supply

After relatively little movement on home sales in recent years, real estate analysts say the housing market in Southern California is poised for an energetic rebound in the spring and summer months of 2015. Compared to the same time last, the number of homes sold in Los Angeles in February jumped by 9 percent, according to data from the California Association of Realtors.

Until recently, Southern California's residential housing market had been relatively stagnant, with demand far outpacing supply. As a result, bidding wars have been widespread in recent years and properties are routinely bought and sold without ever being listed on the market.

With more homes becoming available in the early months of 2015, prospective home buyers have more options to choose from. However, competition among buyers is still fierce in many areas and prices are still relatively high - about 2.5 times the national average. Until inventory increases to more closely match the demand, analysts say it is likely to stay that way.

A push for new development

In order to lower California's notoriously high housing costs, a recent report from the Legislative Analyst's Office found that the state would need to build far more homes each year - about 100,000 more annually - than are already being built.

While the findings in the report may not be good news for buyers, at least in the short term, they do presents an attractive opportunity for real estate developers and investors - especially in Los Angeles and other areas along the California coast, where the demand for new homes is highest. The report calls on California legislators to enact new policies on a broad range of topics to attract developers who will help to fill the supply gap.

Make an informed decision

When purchasing land or real estate in California, whether for your own use or with the intention of developing it for investment purposes, there are many complex legal issues that must be considered. Especially in today's competitive and fast-paced marketplace, the pressure to act quickly and make snap judgments can be intense.

However, while swift and decisive action are often key to successful real estate transactions in today's fast-paced marketplace, careful planning, preparation and due diligence are also critical. By working closely with a skilled real estate attorney who understands your priorities and objectives, you can feel confident that the decisions you make regarding your investments are sound and well-reasoned, and that your interests will be well protected in the event that any unexpected conflicts should arise.