Los Angeles Housing Market: September 2024 Analysis
The Los Angeles, CA metro area housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes stands at $885,795, reflecting a slight decrease of 1.6% year-over-year (YoY). In contrast, the Median List Price has increased by 5.5% YoY, reaching $949,000. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic conditions.
Price Per Square Foot metrics also show an upward trend. The median Price Per Square Foot is $595.96, marking a 3.0% increase YoY. Similarly, the Median List Price per square foot has risen to $617.98, also up by 3.0% YoY. These figures indicate a steady appreciation in property values on a per-square-foot basis, despite the overall decline in Median Sales Price.
Sales activity in the region is robust, with 4,004 Homes Sold, representing a 2.7% increase YoY. Pending Sales have seen a more significant rise, up by 8.5% YoY, totaling 4,804. This suggests a strong demand pipeline, potentially leading to continued sales growth in the coming months. New Listings have surged by 13.2% YoY, reaching 5,891, which may help alleviate some inventory constraints.
Inventory levels have expanded considerably, with a 23.2% YoY increase, bringing the total to 14,443 homes. The Months of Supply have also risen dramatically by 60.0% YoY, now at 3.60 months. This increase in supply could provide more options for buyers and potentially stabilize price growth in the near term.
The Median Days on Market for homes is 43 days, a 7.0% increase YoY, indicating a slight slowdown in the speed of transactions. The average sale to list ratio is 100.2%, down by 0.8% YoY, suggesting that homes are selling slightly closer to their list prices than in the previous year. The percentage of Homes Sold above list price has decreased by 6.0% YoY, now at 44.9%, which may reflect a cooling in competitive bidding.
Price Drops have increased by 2.7% YoY, with 21.4% of listings experiencing reductions. This could be a response to the increased inventory and longer market times. Additionally, the percentage of homes going off-market within two weeks has decreased by 7.4% YoY, now at 30.8%, further indicating a moderation in market velocity.
Overall, the Los Angeles housing market in September 2024 exhibits a mix of rising supply and moderating demand dynamics. While certain price metrics continue to appreciate, the increase in inventory and slower transaction speeds suggest a potential shift towards a more balanced market environment.
