Is Low Inventory Impacting Real Estate Prices ?

From the ocean to the hills, inventories are vastly different. Single family homes north of Montana Avenue in Santa Monica there are only a handful properties on the market while in Hollywood Hills there are 214 today. So, how is that impacting prices?

Obviously if there are less things to choose from than interested buyers that can drive the prices up and vice versa. I guess the key is: do you need to move or just want to? And, can you find a home that works in your price range in an area that you like?

I often get asked what I think the market is doing and my answer is always the same: which market? And I suppose that is the question to answer first.

Am I missing anything? I welcome your feedback and insight in the comments section below.