Report: Housing Inventory Drops Dramatically

The number of homes for sale in the South Bay decreased dramatically between February 2013 and the same month in 2012; however, prices have risen slightly more than 13 percent in the same year, according to the South Bay Association of Realtors, which covers the cities of Redondo Beach, Hermosa Beach, Manhattan Beach and Torrance, among other areas.

"Housing prices appear to be recovering well; however, the number of homes for sale is remarkably low," SBAOR president Sheri Fejeran said in a statement.

In the South Bay, 763 single-family homes were available for sale in February 2013, compared with 1,382 for sale in February 2012—a nearly 45 percent decrease. The number of units sold, however, increased about 18.3 percent from 189 in February 2012 to 220 in February 2013.

The number of condominiums and townhomes for sale decreased by nearly 58.3 percent. In February 2012, 822 condominiums were on the market, while in February 2013, only 343 were.

The number of units sold remained flat.

The data did not include home sales from the Palos Verdes Peninsula and its cities.