LA County home median sale price jumps $30,000 from July to August.
U.S. Home Purchase Applications Hit 27 Year Low
Here is another sign that there are not enough homes for sale on the market.
If we had more housing inventory, we would not have this issue. I am still seeing strong buyer demand out in the field.
Revised predictions for what will happen to home prices by the end of 2023:
The original 2023 forecasts (released in late 2022) for all of these organizations called for home prices to fall.
Looks like they have all changed their tune.
Zillow said... Redfin said... Realtor.com said...
Keep in mind Zillow recently lost $880,000,000 on their failed home-flipping business... they are not the best at predicting market trends.
Where do you think home prices will go by the end of 2023?
Mortgage rates hit their highest point since 2000!
The average rate on a 30-year fixed mortgage has hit 7.48%, according to Mortgage News Daily.
Mortgage rates jumped, following a rise in bond yields driven by investors’ concerns that high interest rates and inflation will linger longer than expected.
Listings fell to a 12-year low for June
Southern California’s housing market continued rebounding in June, despite below-average sales and the highest mortgage rates in seven months.
With inventory at the lowest level for a June in a dozen years, even this year’s diminished demand exceeds the number of homes for sale, driving up prices.
As a result, the median price of a Southern California home — or price at the midpoint of all sales — was $730,000 in June, CoreLogic reported.
That’s down just 0.7% or $5,000, from a year earlier. It also follows four months of off-and-on price gains that brought the region’s median within $20,000 of the all-time high of $750,000 reached in April 2022.
Millennials Are Losing the Home-Buying Edge to Baby Boomers
Baby Boomers have officially taken over! They now represent 39% of all home purchases.
Millennials have dropped down to 28% of home purchases.
Median home listed in LA will soon cost more than $1M — up 30% in 5 years
The already dizzying Los Angeles housing market is poised to reach new heights, as the latest data from Zillow suggest that the median home listed in the city will soon cost more than $1 million.
As of June 30, the figure was $975,333, more than a 30% increase from five years prior. Statewide, six other cities were even more expensive and had already crossed the million-dollar mark: San Jose, Santa Maria, Santa Cruz, Salinas and San Francisco.
In Santa Cruz and San Diego — the major markets with the largest increases — median listing prices were up more than 40% over the last five years.
Source: Los Angeles Times - By Terry Castleman
Housing market stuck in biggest freeze in a decade
New listings in June take a big year-over-year hit in LA County
There was about a 41% drop year-over-year for active listings in LA county (2,096 listings in June 2023 versus 3,531 listings in June 2022).
Source: Douglas Elliman Report
CA home prices keep rising
Los Angeles metro area average home price up $25,000 from April 2023 to May 2023.
1/3 of home buyers are paying in cash – who are they?
Redfin found that 33.4% of buyers opted for an all-cash deal in April, the highest that mark has been since 2014.
Baby Boomers make up the largest share of those buyers with more than half of people age 58 to 76 paying in all-cash.
“Homeowners have really been the winners in that scenario … they have equity and are able to make a move with paying all cash,” Jessica Lautz, National Association of Realtors deputy chief economist and vice president of research, told Nexstar.
Another trend that stood out in the data – single women are the most likely to pay in all-cash, Lautz found.
28% single women
27% married couples
20% single men
20% unmarried couples
When it comes to the race of all-cash buyers, Lautz found that 23% were white/Caucasian, 15% Black/African-American, 8% Asian/Pacific Islander, and 8% Hispanic/Latino.
Supply shortage keeps LA home prices afloat
Spring 2023 has shaped up as one of the slowest-selling seasons on record for Southern California.
Low housing inventory has kept home prices afloat.
Luxury home sales in LA plummet after "Mansion Tax" start date
Measure ULA — also known as the “mansion tax” — was passed by L.A. voters in November 2022 to establish the city’s first dedicated stream of affordable-housing revenue. The measure adds a 4 percent tax to sales over $5 million and 5.5 percent tax to sales over $10 million.
We just had the slowest-selling April in 35 years
Home sales across Southern California have fallen steeply, with the number of deals down by almost half.
Buyers closed on 13,201 single-family homes and condos in April, down 46 percent in a year, the Orange County Register reported, citing figures from CoreLogic.
It was the third biggest, year-over-year drop since records began in 1988.
The wrench in the machine is high mortgage rates and low housing inventory, with the local housing market seeing its slowest-selling April in 35 years. It was also the 18th-worst sales month total on record.
Sales in Los Angeles were down 39 percent, according to the Register.
The Southern California market has a 2.5-month supply of single-family homes waiting to be sold, 34 percent below the average since 2008.