Record-low inventory and surging buyer demand in 2020 created the most extreme supply-demand imbalance I've seen in 40+ years. Fewer homes listed while more buyers competed, driving historic appreciation across Southern California.
Inventory Collapse
March 2020: New listings dropped 40-50% as sellers sheltered in place.
Never recovered. 2020 ended with 2-3 months inventory (balanced is 5-6).
Demand Explosion
Simultaneously, buyer demand exploded.
Low rates + remote work + government stimulus = unprecedented demand.
Math
Low supply + high demand = prices explode
3 months inventory = strong seller's market
Appreciation 8-12% annual rate.
Appraisal Impact
With few sales, comparable data sparse. Appraisers rely on older comparables adjusted for rapid appreciation.
High uncertainty. Professional judgment essential.
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2020 supply/demand? Perfect storm for appreciation. Contact me.