We’re halfway through the year, and the housing market shows no signs of prices coming down. California’s median home price set another new record high of $818,216. In Los Angeles County, the median home prices jumped $120k since last year – or $13.70 every hour. Buyers in this market are definitely feeling this rapid escalation. And just like pouring gasoline on a fire, this is only fueling the price increases as frustrated buyers up the ante on their subsequent offers after every home they don’t win.

The year-over-year price increase was the largest ever, and it was the second month in a row that California had an annual increase of more than 30%. It was the second time since June 2013 that the state recorded an annual increase of over 30%, according to the California Association of Realtors (C.A.R.). Just like the national housing market trends, the tight inventory and low mortgage rates are fueling the rise in California home prices. While this kind of price appreciation impacts housing affordability, higher home prices will hopefully encourage more sellers to list their homes for sale, which would in turn reduce the rate of appreciation.

C.A.R. indicates they’re seeing a cool-down, but based on my business and my active clients’ activity, I’m not sure I quite agree. “The overheated housing market is showing signs of a much-needed cooling and could be a sign of waning buyer interest as the torrid pace of home price increases and buyer fatigue adversely affected demand,” said C.A.R. President Dave Walsh. “We’re seeing many would-be buyers taking a break and hoping to see more listings as the economy reopens and prospective sellers list their homes for sale.”

What I do see is buyers starting to walk away from listings when they consider sellers to be egregious in their efforts to capitalize on the market. While we all understand the laws of supply and demand, feeling good about the terms of a transaction should be important to both sides. High purchase prices are one thing. Requests for multiple-month free lease-backs, not agreeing to any credits or repairs, and asking buyers to waive their loan contingency – or shorten it to a length that no lender can fulfill, isn’t always the best way to kick off a mutually successful transaction. Many of those sellers need to become buyers, and bringing back some basic humanity to the transaction will still garner top dollar and keep both sides happy.

The good news in Los Angeles is that new listings are hitting the market every day. Competition will remain fierce, but as more inventory becomes available, so do options. It’s easier for buyers to get aggressive with their offers when they start to realize they just might be able to find a house that checks all of the boxes on their wish list.

As both a listing and a buyers’ agent, I encourage my sellers to be fair and provide as much education as possible to my buyers when it’s time to push them a little out of their comfort zone. I’ve been fortunate this year to have closed a number of transactions where both parties were thrilled with the results. I look forward to continuing on that path.