Los Angeles Housing Market: Stability Amidst Shifting Dynamics
The Los Angeles, CA metro area housing market in November 2024 presents a complex landscape characterized by stability in some areas and notable shifts in others. The Median Sales Price remains unchanged year-over-year at $900,000, indicating a stable pricing environment despite broader economic fluctuations. However, the Median List Price has decreased by 5.2% to $899,000, suggesting sellers are adjusting expectations to align with market conditions.
In terms of Price Per Square Foot, the market shows a slight upward trend. The median Price Per Square Foot has increased by 2.1% to $593.71, while the Median List Price per square foot has risen by 2.3% to $600.34. These increases suggest a steady demand for housing, even as sellers adjust overall pricing strategies.
Sales activity in the Los Angeles metro area is robust, with Homes Sold increasing by 9.9% year-over-year to 3,871 units. Pending Sales have also seen a significant rise of 10.8%, reaching 4,340 units. This uptick in sales activity indicates strong buyer interest and a competitive market environment.
Conversely, New Listings have decreased by 4.1% to 4,067, while inventory has grown by 15.3% to 13,327 units. This increase in inventory, coupled with a 10.0% rise in Months of Supply to 3.40 months, suggests that while demand remains strong, the market is experiencing a slight shift towards a more balanced state.
The Median Days on Market have increased by 9.0% to 47 days, reflecting a slower pace in the market compared to the previous year. This change, along with a slight decrease in the average sale to list ratio by 0.5% to 100.0%, indicates that buyers may have more negotiating power than in previous months.
The percentage of Homes Sold above list price has decreased by 4.8% to 41.6%, further highlighting a shift in market dynamics. Additionally, Price Drops have seen a marginal increase of 0.4% to 18.9%, suggesting that sellers are becoming more flexible in their pricing strategies to attract buyers.
Finally, the percentage of homes going off the market within two weeks has decreased by 6.7% to 27.0%, indicating a slower pace of transactions. This slowdown may be attributed to the increased inventory and longer days on market, providing buyers with more options and time to make purchasing decisions.
Overall, the Los Angeles housing market in November 2024 reflects a stable yet evolving environment. While prices remain steady, increased inventory and longer market times suggest a shift towards a more balanced market, providing opportunities for both buyers and sellers to navigate the changing landscape effectively.
