A recent release from the California Association of Realtors (CAR) showed healthy gains for the Los Angeles metro area compared to March 2016.

Sales of existing, single-family homes were up 6.7 percent annually. The median sold price was $448,420 in March 2016 but was all the way up at $474,550 for March 2017. Sales in Los Angeles County were up 8.4 percent year over year, and up 7.3 percent in Orange County. LA saw the second-largest gains of Southern California counties, only behind Riverside, at a 12.9-percent increase.

Average sale time for the Los Angeles metro area was also trending positively, with homes staying on the market for just 37.6 days—an 11-day difference from March 2016, when the average time was 48.6 days. In LA County specifically, homes were on the market for only 29.8 days, which is much lower than last March’s average of 43.2. Orange County homes dropped from 49 days on the market to 32.6. 

While all of that sounds like a positive for sellers, CAR Senior Vice President and Chief Economist Leslie Appleton-Young paints a less rosy picture for buyers in the coming months, per a press release: 

“The spring homebuying season is off to a good start, as the economic and market fundamentals remain solid for the most part. However, higher interest rates, a dearth of housing inventory, and slow wage growth will continue to have an adverse effect on housing affordability that is putting upward pressure on home prices, and is sure to hamper the market throughout the year.” 

Statewide listings dropped by 12 percent year-over-year according to the report, decreasing supply and pushing market demand up for homes.