Los Angeles Real Estate Market Update - APRIL / MAY 2024

Housing supply still remains the largest obstacle to more home sales. Fortunately, the inventory shortage has begun to thaw very slightly of late. New listings have been growing on a year-to-year basis providing more options to buyers that are finally beginning to replenish closed transactions each month. However, the number of homes reaching the Los Angeles real estate market are still too few to prevent rising competition as we enter the Spring Homebuying season. The median number of days a home takes to enter into escrow has fallen into the teens in recent weeks and nearly half of all the transactions are closing above list price once again. Home sales are expected to moderate in response to this more recent jump in interest rates, but the strong economic data and low levels of unemployment continue to put pressure on a housing market that is near historic lows for supply.

The housing market remained competitive in March as 60% of respondents said homes listed on the market were sold in less than a month, an improvement from 56% recorded a month ago but a decline from 65% in March 2023. On average, listings received 3.1 offers in March, as compared to 2.7 offers in the prior month and 3.2 offers in the prior year.

With seasonal factors and tight inventory expected to continue to put upward pressure on prices, the Los Angeles real estate market median price should climb further in the next couple of months.

Los Angeles Housing Supply Data

Generally, a balanced market will lie somewhere between four and six months of supply. Inventory is calculated monthly by taking a count of the number of active listings and pending sales on the last day of the month. If an inventory is rising, there is less pressure for home prices to increase. With 2.6 months of supply left, it is still short of what economists say is needed for a balanced market. Hence, the Los Angeles County housing market will continue to see upward pressure on home prices.

Data shows thar the Los Angeles housing market remains competitive, with home values continuing to appreciate. As per C.A.R., the median sold price of existing single-family homes in Los Angeles for March 2024 reached a significant milestone: $805,100. This figure represents a year-over-year increase of 12.1%, reflecting a sustained upward trend in home values compared to March 2023 ($718,370).