Los Angeles Real Estate Market - August 2024

Despite rates fluctuating throughout the month of June, newly opened escrow sales appeared to be making some improvement in the past few weeks as average pending sales per transaction-day increased 8% from a year ago. With inflation easing but remaining higher than the Fed’s target, the U.S. central back is still expected to cut rate later this

year but at a more moderate pace than previously anticipated. As such, home sales should improve in the second half of the year but at a more gradual pace than what was projected earlier. Home sales should begin to bounce back and improve more consistently in Q3 and Q4.

The median sold price of existing single-family homes in Los Angeles has seen a remarkable increase. As of June 2024, the median sold price rose to $889,180, marking a 9.6% increase from May 2024 and a 6.8% increase from June 2023. This upward trajectory in home prices amidst declining sales suggests that demand remains strong for available properties, even as fewer transactions take place.

In comparison, the Southern California region’s median home price stood at $875,000, reflecting a slight decrease of 0.6% when compared to May 2024, yet registering a healthy 7.4% increase year-over-year. This juxtaposition of declining sales alongside increasing prices indicates a market that may be tightening, with motivated buyers competing for limited inventory amid economic challenges.