Market Report - January 2021
2021’s housing market is off to a strong start in Los Angeles.
Although the housing market in January was finally seeing some seasonal slowing that is typical during the winter, the pace of home sales remained strong relative to the same period in 2020 and through the beginning of the year. Despite slightly higher mortgage rates over the past few weeks, California REALTORS® continued to report strong demand from first-time buyers in particular.
From a supply-and-demand perspective, sellers currently hold the upper hand in these constrained housing markets. In 2021, home buyers will have to compete fiercely for limited inventory -- as they did last year.
What are the Los Angeles real estate market predictions for 2021?
The housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the U.S. However, there are still many challenges on the horizon including lack of inventory, rising prices that are eroding housing affordability and the ongoing restrictions that the economy will continue to face until we can resume more “normal” economic activity. Overall, things are looking good as the Los Angeles housing market is off to a strong start but with challenges for buyers craving more choice.