Los Angeles Housing Market Update - MAY 2023
Good News for Homeowners! The typical homeowner gained six figures in wealth over the last decade: A new housing report by the National Association of Realtors®(NAR) revealed that middle-income homeowners accumulated $122,100 in wealth as their homes appreciated by 68% in the last 10 years.
The California housing market continues to heat up as homes are selling faster and the sales-to-list-price ratio is improving. As a result, the statewide median homes price recorded a healthy increase of 7% on a month-to-month basis after six months of straight declines. That said, the number of homes available for sale continues to tighten as fewer new listings are failing to replenish inventory. All signs point to a market with solid demand, which should help bolster sales through the homebuying season, but tight inventory will prevent a rapid rebound. Based on last month's data, Los Angeles County was a seller's real estate market, which means that there are more people looking to buy than there are homes available
Refinance activity fell on a week-to-week and a year ago basis. According to Freddie Mac, the average 30-year fixed rate mortgage bumped up to 6.39% as of Thursday, April 20,2023 – 116 basis points higher than the same time from last year. Although home prices have softened somewhat, rates are stuck above 6%. As such, affordability continues to be a serious issue for many potential homebuyers and with limited inventory of homes, buyers will be more selective about when to act.
Source: California Association of Realtors (CAR) + Norada Real Estate