Los Angeles Real Estate Market - No Inventory?

[Kris Kahrs]

My realtor states that there is no inventory in the Los Angeles marketplace & that's why the prices are so high.  I told him that Zillow says the L.A. area has approx. 11,701 properties for sale, so if there is no inventory why does Zillow have such a large amount?  My realtor said that those are the houses no one wants.  There's no inventory for good homes in areas buyers want to be in.  Meanwhile my hubby & I asked him to bring us all the offers at once , but he refused saying it wasn't 'cricket'.  He also pushed heavily for us to take the 1st offer we got.  He said the longer we were on the market, the more buyers would think there was something 'wrong' with the house, this after being listed for 2 days.  The 1st offer was below our Listing Price by $50K.

How much of the real estate market in L.A. is actually created by our real estate system?  I'm sure there are a lot of people out there who know a lot more about this than I do.