Los Angeles County is one of the most in-demand cities for California homebuyers. Evidently, prices in L.A. are growing very slowly compared to last year. Prices increased only by 2.1 percent in the last few months.
Additionally, median home prices across Southern California have dropped since March. It stands as the first annual decrease in seven years. Although the median price only dropped 0.1 percent, it’s the final of a growing price trend for 83 consecutive months. This report includes the following counties:
- San Bernadino
- San Diego
The state of the market is turning as sales in higher-cost areas now represent a minor portion of the entire sales activity. In March, 5,749 homes were sold — a decrease of 15.5 percent from last year.
Recent reports from the California Association of Realtors indicate that the median sold price of single-family homes was $525,520 in March 2019. This is a 2.9 percent decrease compared to March 2018. However, in April 2019, Los Angeles County’s median sold price was $544,170.
What About Homes Sales in LA?
The L.A. metro region registered a sales drop by 12 percent in April. Counties like Riverside and San Bernadino have experienced similar decreases with 9.3 percent and 12.2 percent respectively. Consequently, sales have dropped for the past eight consecutive months in each county of LA.
In California, homes sales dropped by 8.2 percent in March, compared to last year. Yet, it’s much easier to sell a house now. The number of days it takes to sell a single-family home in L.A. went from 25 days in March 2018 to 17 days in March 2019.
Potential buyers are worried about purchasing homes that are listed at higher prices. The supply of property offered for sale in L.A. is 24 percent higher than March 2018. Conversely, in Orange County, the offer increased by 40 percent.
General Overview of LA’s Real Estate Market?
Many economists trust that California will remain economically stable. It continues to be in high demand as investments and new developments continue to grow. Additionally, unemployment in California is at 4.3 percent, which is a record low.
Reports indicate that the current state of L.A. is a “pause in the market”. The market must adjust itself since home prices have reached high levels and overcome incomes at unsustainable rates.
Simone Poingsett, a Real Estate Agent in Los Angeles, affirms that buyers are developing more interest after the adjustment in rates. Price rates have dropped from 5 percent last November to 4.2 percent in April 2019 and the Federal Reserve has signaled that it won’t raise the rates again during this year.
This change will motivate buyers to enter the market progressively. Homebuyers in L.A. If you are thinking about buying a home in L.A., don’t wait too long because experts say that the downturn in home prices will be short lived!