Read the latest Los Angeles real estate news on local housing prices, mortgage rates, and real estate market trends.
Los Angeles County Housing Market Trends
According to the Los Angeles County real estate market report for November 2021, inventory has decreased over the last 3 months but is still up year-over-year. The median sale price of single-family homes is $900,000, and this year is undeniably a great time to sell for homeowners looking to cash in on their equity. Homeowners who recognize this as the ideal time to sell are taking advantage of the seller’s market across Southern California, selling for top dollar and spurring bidding wars with multiple offers.
Check out the full Los Angeles County report below to find out where home prices and inventory are for your city. Be warned, whether you’re buying or selling this year, the market is moving still moving fast in nearly every city across LA County.
LA Housing Market Trends For November
Median Home Price: Across LA County, median home prices for single-family homes dropped in November to $900,000. Single-family home prices have still increased 16% year-over-year, but are cooling a bit as we head into the winter market. Across all Southern California markets, home prices have been hitting record highs this year.
Inventory: It is still a seller’s market with extremely low inventory in Los Angeles County with 5,514 single-family homes for sale in November. Inventory has dropped 9% in just the last three months, but it has been coming back up from all-time lows during the spring.
Home Sales: 3,265 single-family homes sold last month, remaining consistent despite fluctuations in inventory over the past year. That tells us buyer demand remains strong and sellers can expect a quick sale with multiple offers if their home is priced and prepped properly for the market.
Luxury Highlight: The average sale price in Beverly Hills last month was $7,460,652. Inventory has dropped since last year but sold transactions are still remaining consistent. Typically, luxury homes sit on the market for several months longer than lower-priced homes but in Beverly Hills, the average number of days on market is down to 66 days. Not only is Beverly Hills one of the richest neighborhoods in Southern California, but it’s also ranked as one of the best places to live in SoCal as well.
According to a recent Global Millionaire Luxury Report, high-end consumers are feeling optimistic about spending, notably luxury homeowners who are more interested than ever in retirement properties that are a safe asset.
Will real estate prices drop in Los Angeles?
Probably not. Median home values however are expected to continue rising over the next year, with an 8.3% increase expected. Homes for sale in Los Angeles County historically hold their value well and with inventory remaining tight, it’s no surprise home prices are expected to rise.
Southern California Housing Market Trends 2021
Across Southern California, all major regions have seen double-digit price growth as of October 2021, however, the record-setting highs appear to be done for the year. According to the latest report from the California Association of Realtors, about 60% of homes in LA sold above the asking price! There is such high demand for housing that bidding wars remain the norm across the Southern California real estate market.
- Southern California saw an 14% year-over-year price gain with a median price of $750,000.
- LA Metro specifically had a year-over-year price gain of 13.9% overall, with a median price of $848,970.
- Orane County median sold prices increased 20.4% year over year to $1,120,000.
- Riverside County had a year-over-year price gain of 19.6%, with the median price of $580,000.
- San Bernardino County median prices hit $445,000 increasing 21.9% year-over-year.
- The SoCal market is just as hot as the San Francisco bay area, where home prices have increased 15.9% over the last year.
Is 2021 a good year to buy a house in California?
Yes – if you can afford it. According to the latest Affordability Index from CAR, homes across LA are less affordable in Q3 2021 than they were in Q2 2021 and Q3 2020, in part because mortgage rates are beginning to rise from historic lows. The minimum qualifying income for the average home in LA is $156,800 with an expected monthly payment of $3,920.
If you’re looking for the most affordable housing Los Angeles has to offer, check out our post on the most affordable and safe places to buy in LA County.
Los Angeles Real Estate Market Forecast 2021-2022
Here are some highlights and expectations for the LA real estate market through this year and next:
- 8.3% expected in median home value over the next year
- Unemployment Rate: 15.1% (according to the Bureau Of Labor Statistics)
- California home equity up $116,000 over the past year
- But according to ATTOM Data, price gains outpace wage growth in three-quarters of markets including LA.
Is Los Angeles real estate a good investment?
Los Angeles real estate is a great investment, just like all Southern California real estate, which is constantly in demand and continually sees rapid home price appreciation. Rents are rising faster than median prices in LA, which means if you’re looking at it from a long-term affordability standpoint, it is better to buy than rent.
Demand for rental properties is also high, which is good news for landlords. So although home prices are high across Los Angeles County, local real estate investors with cash-flowing rental portfolios are taking advantage of positive market conditions.
What are the best neighborhoods in Los Angeles?
There are hundreds of neighborhoods across LA County with tons of amazing options to choose from depending on your price point and lifestyle desires.
If you’re looking for the most affordable places to live in LA, check out our list of Top 10 affordable and safe cities. Among the top places to buy if you’ve got a tight budget: Bell Gardens, West Covina, La Verne, Norwalk, and Pico Rivera.
Across all of LA County, the following areas are some of the most popular neighborhoods:
Hollywood – Hollywood real estate includes charming vintage houses, bungalows, and more. Hollywood is a popular place to live because of the nightlife, eateries, and top tourist spots like Runyon Canyon and the Hollywood Forever Cemetery. Hollywood is most popular among renters, but there are plenty of houses for sale as well.
Manhattan Beach – Located new the airport with an amazing local school district, Manhattan Beach is often regarded as one of the best places to live in LA County. The city includes 2.1 square miles of beachfront which means lots of high-value real estate to choose from. The Hill Section in Manhattan Beach is also one of the richest neighborhoods in Southern California.
Santa Monica – If you don’t mind the hustle and bustle, Santa Monica is another great beach town to choose from in Los Angeles. It’s walkable, the schools are good, and there’s tons of shopping. But be warned, the traffic is heavier in Santa Monica than in other beach cities, especially so close to Malibu.
San Fernando Valley – Known as simply The Valley, this area includes neighborhoods such as Sherman Oaks, Van Nuys, Encino, North Hollywood, Burbank, Reseda, and Toluca Lake. The Valley is very suburban, safe, quiet, and popular among families. The Valley also includes more new home construction than other areas of Los Angeles.
Pasadena – A highly walkable area of Los Angeles, Pasadena is dedicated to sustainability. Pasadena real estate includes tons of vintage-style homes like Craftsmen from the 19th and early 20th centuries, and the city is home to the California Institute of Technology as well as the Jet Propulsion Laboratory and Pasadena City College.
Beverly Hills – Famous for its mansions and luxurious real estate, Beverly Hills is one of the most coveted places to live in Los Angeles. An exclusive community of the rich and famous, popular neighborhoods in Beverly Hills includes the Flats, located between Santa Monica and Sunset Boulevards, Trousdale Estates, Roxbury Park, and Beverly Hills Gateway.
