Los Angeles Real Estate Market Update Oct/Nov '22
The 30-year fixed-rate-mortgage has been increasing at the fastest rate in four decades causing acute affordability challenges and forestalling many consumers’ decision to buy a house. As a result, mortgage applications fell to the lowest level in 25 years and homebuilders’ confidence dropped to half of what it was six months ago.
The market has become less competitive and more sellers are willing to negotiate or offer buyer incentives, and despite a modest recession forecast for 2023, the long-term prospects for continued price growth in California may continue to draw buyers who still qualify at higher rates but have been sidelined during the past two years of frenzied conditions.
September’s statewide median home price was, $821,680 down 2.1% from August and held above last year by a slim 1.6%. With borrowing costs remaining high in the months to come, the pull-back in sales and a downward adjustment in home prices is expected to continue but by how far will it go? Only time will tell…
California Association of Realtors (CAR) - Weekly Market Update