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Why the Supply of Homes for Sale Is Staying Low in 2026 — and What That Means for Sellers in Redondo Beach

  • melissapilon
  • May 5
  • 4 min read

If you’ve been watching the housing market this year, you may have noticed something surprising:


Despite buyer demand improving and mortgage rates easing from where they were a year ago, the number of homes for sale remains stubbornly low.


And that’s becoming one of the biggest stories of 2026.


Many buyers expected more inventory this spring. Many sellers assumed more competition would be coming. But nationally — and in many local markets — that inventory growth has slowed dramatically.


So what’s actually happening?


And if you’re a homeowner in Redondo Beach, what does it mean for you?


Let’s break it down.


The Big Housing Story in 2026 Isn’t Demand — It’s Supply


According to recent data shared by Mike Simonsen, Chief Economist at Compass, pending home sales are running about 2% higher than the same time last year, while mortgage rates are roughly 60–70 basis points lower than last spring, making payments on a median-priced home approximately 6% cheaper than a year ago.  


That’s helping bring buyers back into the market.


But here’s the bigger story:


Inventory isn’t rising the way many expected.


Nationally, there are about 963,000 homes for sale, only slightly above last year’s levels — a sharp slowdown compared to the roughly 30% year-over-year inventory growth we saw around this time last year.  


That means supply remains tight.


And in markets like Redondo Beach, where inventory is already limited by geography and lifestyle demand, that matters even more.


Why Aren’t More Homeowners Selling?


This is the question many people are asking right now.


The answer is surprisingly simple:


Most homeowners have very little motivation to move.


Here’s why:


1. Many Homeowners Have Historically Low Mortgage Rates


A large percentage of homeowners bought or refinanced before rates climbed in 2022.


That means many are holding mortgages in the 2%–4% range.


Compared to today’s borrowing costs, that’s a major financial advantage.


For many homeowners, selling would mean:

  • Giving up a low payment

  • Taking on a higher-rate mortgage elsewhere

  • Increasing monthly housing costs significantly


That’s causing many people to stay put.


2. Homeowners Have Strong Equity Positions


Over the past several years, homeowners have built substantial equity.


That creates stability.


Unlike previous housing cycles, most sellers are not under pressure.


They have options.


And when people have options, they tend to be more selective about when — and whether — they sell.


3. Home Prices Are Flattening, Not Falling Dramatically


Nationally, home prices are relatively flat.


That’s important.


Flat pricing means many homeowners aren’t seeing major urgency to list, especially if they purchased recently and would prefer to wait for stronger appreciation.


This is particularly true for sellers who don’t need to move.


What Does This Mean for Redondo Beach Sellers?


For homeowners in Redondo Beach, this creates an interesting opportunity.


When inventory remains low:

  • Buyers have fewer choices

  • Well-positioned homes stand out faster

  • Competition among buyers often intensifies for quality listings


That doesn’t mean every home will sell quickly.


But it does mean:

Good homes, priced well and presented strategically, can attract strong attention.

And that’s important.


Because low supply does not automatically guarantee success.


Strategy still matters.


Low Inventory Doesn’t Mean “List Anytime”


This is one of the biggest misconceptions.


Some sellers hear “inventory is low” and assume:

“Great — I can list whenever and however.”

Not exactly.


Buyers in 2026 are active, but they’re selective.


They’re looking carefully at:

  • Condition

  • Layout

  • Pricing

  • Presentation

  • Overall value


That means sellers still need to prepare thoughtfully.


Low supply helps.


But it doesn’t replace strategy.


What Buyers Are Doing Right Now


From what I’m seeing locally, buyers are active — but focused.


They’re:

  • Touring quickly when something strong hits the market

  • Moving decisively on homes that feel aligned with value

  • Being patient with homes that feel overpriced or underprepared


That creates a split market:

Well-positioned homes move. Misaligned homes sit.


That distinction matters more than ever.


Could Inventory Tighten Even More?


Possibly.


One of the more notable trends in the current data is that new listings are actually coming in below last year’s pace.


That means fewer sellers are entering the market than expected.


If that continues — and mortgage rates remain relatively stable — inventory could tighten even further moving into summer.


That would create even stronger supply constraints.


And for sellers considering a move, timing becomes worth evaluating carefully.


Should You Wait to Sell?


That depends.


For some homeowners, waiting makes sense.


For others, limited inventory creates an advantage right now.


The better question isn’t:

“Should I wait?”

It’s:

“What would selling look like for me in today’s market?”

That’s a much more productive conversation.


Because every homeowner’s timeline, equity position, and next move are different.


Final Thoughts: Supply Is Still the Story


A lot of headlines focus on mortgage rates.


And yes — rates matter.


But right now, one of the strongest forces shaping the market is supply.


Or more specifically:

the lack of it.


And when inventory remains limited, sellers who are prepared and positioned well often benefit from stronger buyer attention.


The market may not feel frantic.


But it is still competitive — especially for homes that check the right boxes.


Thinking About Selling in Redondo Beach?


If you’re curious about:

  • How much inventory is competing with your home

  • What buyers are responding to right now

  • Whether this market timing makes sense for your goals


I’m always happy to have a conversation and help you look at the market through a practical, local lens.


Melissa Pilon

Compass | Realtor®

DRE#: 01974762

21250 Hawthorne Blvd, Suite 750, Torrance, CA 90503

248.953.8405


Follow on Instagram @melissapilonhomes for Redondo Beach market updates


Welcome to my little corner of Southern California living! @melissapilonhomes I’m a top Real Estate Agent serving Redondo Beach and the South Bay Area. With 12 years in the business, 125+ homes sold, I love helping clients navigate buying, selling, and even renting with confidence.  I’m passionate about marketing, creating unforgettable experiences for my clients, and turning keys into memories. Proud dance mom to Audrey & Emmy, and puppy mom to Jerry.  I’d love to grab a crispy Diet Coke & chat with you about exploring the best of Redondo Beach, shops, restaurants & beaches. I recently flipped a house with a friend and can’t wait to do more! I can’t wait to connect!



 
 
 

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