Los Angeles, the land of sunshine, celebrities, and iconic beaches, also boasts a housing market that is equally famous – and competitive. Fueled by a vibrant economy and perennial allure, the City of Angels attracts a steady stream of residents seeking a slice of the California dream.
Bucking expectations, Los Angeles boasts robust sales activity and skyrocketing median prices in 2024. This sizzling market offers exciting opportunities for both buyers and investors, but it's not without its challenges. Let's explore the latest trends and forecasts to help you navigate the sun-drenched landscape of Los Angeles real estate.
Trends in the Los Angeles Housing Market
The California housing market continues to defy expectations, with the statewide median home price reaching a new all-time high of $904,210 in April 2024. Los Angeles, the beating heart of the state, mirrors this trend with its own steady growth. Let's dive into the data and see what it reveals for potential buyers and investors in the City of Angels.
Home Prices on the Rise
The median sales price of existing single-family homes in Los Angeles reached $825,970 in April 2024. This represents a healthy increase of 2.6% compared to March 2024 and a significant 11.8% jump year-over-year. Los Angeles hasn't just kept pace with the statewide growth; it's slightly outperformed it.
Expanding our lens to encompass the broader Los Angeles Metro Area, we find a similar narrative of growth and prosperity. With a median price of $840,000, the region experienced a notable 4.9 percent month-over-month increase and an impressive 13.5 percent surge year-over-year.
Market Still Hot, Inventory Still Tight
The number of homes sold in Los Angeles also painted a positive picture. Sales figures rose 11.7% in April 2024 compared to the previous month, and 9% year-over-year. This indicates a busy market with consistent buyer demand. Keep in mind, a seller's market is often characterized by high demand and low inventory. So, while sales are up, finding the right property at the right price might still be a challenge for potential buyers.
Los Angeles Housing Supply Statistics
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.
What Does This Mean for You?
The Los Angeles housing market shows no signs of slowing down. Prices are rising, and buyers are actively competing for available properties. If you're considering buying a home in Los Angeles, be prepared to move fast and potentially engage in bidding wars. For investors, the market offers the possibility of long-term appreciation, but competition will likely be fierce.
