Los Angeles Housing Market 2022: Prices, Trends & Forecast
The Los Angeles housing market is still somewhat competitive. However, we see many of the same trends in pricing and forecast nationwide. It’s still a seller’s market, but the tides may be turning. Check out this complete article on Los Angeles housing market prices, trends, and forecasts to see if you should buy or sell.
Los Angeles Housing Market Prices
According to data from Redfin, prices continue to rise in the Los Angeles area. The median price of all home types increased by almost 5.5% year over year. The median price of all home types is now $975,000. The valuation of homes in Los Angeles is significantly higher than that of homes across the nation.
Single-family homes saw an increase of almost 1% for a median price of $1,125,000.
Townhouses saw a larger increase of 6.7% in price. The median price for a townhouse on the Los Angeles housing market is $700,000.
Condos and co-ops also saw a price increase. The median price for houses in this category increased by 7.2%
However, the median income is barely above $62,000.
Los Angeles Housing Market Trends
According to the Los Angeles Times, people have lost more faith in the housing market than they have since 2011. The article stated, “Federal Reserve raises its benchmark interest rate, rates on a 30-year fixed-rate mortgage have almost doubled year over year, standing at 5.43% in late July compared with 2.97% a year earlier, putting homeownership out of reach for more and more Americans.”
According to the same article, 76% of people that responded said it’s the wrong time to buy. Home price growth is slowing more than in the past few years, and buyers and sellers note it.
We are seeing many of the same housing trends in other housing markets across the nation since COVID.
Prices have increased in every single home category, from single-family homes to townhouses to co-ops.
All categories of homes saw a decrease in the number of houses sold.
The number of homes sold in all categories decreased year over year by 28.1%. Approximately 1,860 homes were sold on the Los Angeles housing market. Places to live are spending an average of 41 days on the market, which is up 3 days year over year.
The number of single-family homes sold on the market also decreased year over year by 27.8%. Only 1,191 single-family homes were sold. They are spending an average of 40 days on the market, up 5 days from last year.
Townhouses also saw a decrease in the number of houses sold. The number dropped by 21.6% year over year. Only 138 townhouses were sold out of all of the home types sold. They spend an average of 44 days on the market, which is up 16 days year over year.
Condos and co-ops saw a decrease in the number of houses sold year over year. Only 372 of these homes were sold, which decreased 36.1% year over year. They spent an average of 42 days on the market, which decreased by 1 day. They are selling a little faster, but not much.
The number of homes that are sold above the list price has decreased. Only 45% of homes have sold above the list price. This trend was seen in all housing types.
However, the number of houses with price drops has increased. Over 30% of homes sold on the Los Angeles housing market sold above the list price.
Los Angeles Housing Market Forecast
The Los Angeles housing market forecast does not look suitable for anyone. As the Fed continues to hike rates upwards, it makes mortgages more expensive.
The valuation of homes will continue to increase but at a steady rate. It will be much slower than we saw in previous years. However, this will contribute to many buyers being unable to afford a house.
The housing supply is low. Fewer homes are being purchased on the market, but that is not helping the housing supply grow at an excellent rate to stabilize the market. That’s because many people are simply renting instead of buying houses. The housing supply might increase a small amount, but it won’t be enough to stabilize the market for quite some time. This will contribute to the increase in housing costs and make the price rise further.
Despite the price increases, sellers will not be able to make as much money on their property. This is because few buyers can afford the high prices. We will continue to see more homes selling on the market with price drops. Avoid having to lose money on your house in Los Angeles by selling it fast to us.
Unfortunately, it’s not the ideal market for buyers or sellers. Sellers are finding that they cannot capitalize on the increase in housing costs as much as they previously could, and some houses are simply sitting on the market.
Buyers have already discovered that now is not a good time to buy a house. The rising prices and increased mortgage rates have resulted in many people not participating in the housing market.
Sellers that want to sell need to sell fast while there are still buyers who can afford to purchase a house. If not, they risk losing money instead of making money or not being able to sell their house. Need to sell your house fast? Give us a call today. We buy houses in the Los Angeles area!
Buyers who need to purchase a house have a little negotiating power due to so many houses sitting on the market.
Investors are better off investing in other housing markets that will be more active. For example, check out the Orlando housing market trends or what’s happening with the Dallas housing market.