The real estate market in Los Angeles continues to show signs of resilience, with total pending home sale contracts up 6.4% in 2024 compared to the same time last year. According to the latest data from Altos Research via HousingWire.com, buyers and sellers in Los Angeles are seeing positive shifts in market activity as the inventory of homes increases and mortgage rates stabilize.
Key Housing Market Data for Los Angeles
- Inventory Growth: Active listings nationwide rose by 0.8% from 725,249 to 731,017 homes week-over-week. For comparison, inventory during the same week last year was significantly lower at 534,746, and the all-time inventory low was just 240,497 in 2022. This increase in available homes for sale presents a valuable opportunity for Los Angeles homebuyers to find properties that meet their needs in competitive neighborhoods like Brentwood, Beverly Hills, and Santa Monica.
- New Listings on the Rise: New listings hit 63,022 this year, up from 56,168 in 2023 and 59,780 in 2022. This influx of fresh listings benefits both Los Angeles home sellers and buyers. For sellers, there’s a growing pool of potential buyers to attract, while buyers have more options to choose from in a market that previously faced inventory shortages.
- Price Cuts in the Market: About 39% of homes on the market have experienced a price reduction, slightly up from 38% in 2023 but down from 42% in 2022. While this is higher than the typical 33% of homes that see a price cut in an average year, it offers Los Angeles homebuyers more bargaining power, especially in high-demand areas.
What This Means for Los Angeles Buyers and Sellers
For Los Angeles home sellers, the market is stabilizing with inventory rising and more buyers showing interest due to lower mortgage rates. If you’re planning to sell your home in Brentwood, Westwood, or Pacific Palisades, now could be an excellent time to list. With pending home sales up and more buyers entering the market, sellers have an opportunity to get competitive offers, especially as more homes hit the market.
On the other hand, buyers in Los Angeles benefit from a larger selection of homes and increased opportunities to negotiate on price. The slight uptick in inventory and price reductions in certain areas gives buyers in Los Angeles the chance to find homes that fit their budget, whether they’re looking in luxury neighborhoods like Beverly Hills or more affordable areas like Culver City and Silver Lake.
The Impact of Mortgage Rates on the Los Angeles Real Estate Market
While the overall market shows signs of improvement, the most significant boost in demand is likely to come when mortgage rates consistently dip below 6%. Current rates are helping stabilize buyer interest, but affordability challenges remain, especially in Los Angeles, where home prices are among the highest in the country.
For homebuyers considering entering the Los Angeles real estate market, watching mortgage rates closely is key. As rates continue to fluctuate, buyers who are prepared to act quickly could lock in favorable financing on homes in prime neighborhoods.
For sellers, the current market trends indicate growing buyer interest, making this a good time to list your home, especially before inventory increases further. Whether you’re selling a luxury home in Bel Air or a family home in Venice, there are active buyers looking for homes in top Los Angeles neighborhoods.
Our Take on the Los Angeles Housing Market
The Los Angeles housing market is showing positive signs, with pending home sales on the rise and inventory levels increasing, offering more opportunities for both buyers and sellers. However, significant growth in buyer demand will depend on sustained lower mortgage rates. That said, now is a strategic time for sellers to list their homes and for buyers to explore the increasing number of homes available on the market.
If you’re looking to buy or sell a home in Los Angeles, our expert real estate team is here to help you navigate the changing market conditions. Contact us today to discuss your real estate goals and take advantage of the opportunities in the Los Angeles market.