Los Angeles Real Estate Market Update - SEPT 2023
Rates have risen sharply in the past few weeks, and have been steadily rising since early April and just hit the highest mark in nine months. The average 30 year fixed-rate mortgage rose 5bps and reached 7.49% on August 22nd, 2023, as reported by Mortgage News Daily but the housing market has weathered this rise relatively well. Although the primary measures of mortgage demand show that homebuyers remain affected by higher rates, the gap between 2022 and 2023 levels has yet to widen noticeably. In addition, rates have begun to inch down slightly since the Federal Reserve Chairman seemed more cautious about potentially raising rates at the upcoming FOMC meeting in September.
In July 2023, the median listing home price in Los Angeles County, CA reached an impressive $990,000, showcasing a substantial year-over-year increase of 10.5%. This upward trend in median listing prices reflects the strong demand for properties in the area. Additionally, the median listing home price per square foot stood at $635, highlighting the premium value placed on real estate within the county.
An interesting trend observed in the Los Angeles County housing market is the sale-to-list price ratio, which stood at an impressive 100.09% in July 2023. This indicates that homes in the county were typically sold for approximately the asking price, underlining the competitive nature of the market. Furthermore, the county is currently classified as a seller's market, signaling a scenario where demand outweighs the available housing inventory.
With 2.5 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.
Source: California Association of Realtors (CAR) & Norada Real Estate