Los Angeles Real Estate Market Update June/July 2024

The combination of recent market data reports lend themselves to cautious optimism about the trajectory of the housing market in California for the second half of 2024. Mortgage rates have stabilized and even come down slightly after spiking again in April and May.

Rising inventory has helped to relieve some competitive pressure on transactions here in California, which should come as welcome news for would-be homebuyers—particularly as it comes paired with an improvement in rates. Despite the generally positive backdrop, homeowners insurance remains the persistent challenge in California elsewhere as recent reports show premiums have risen significantly, policies are less available, and prices are poised to go even higher.

Mortgage rates are expected to remain stable over the near term and gradually fall in the latter half of the year.

Elevated rates are keeping the lid on home sales, but remaining buyers are finding more options and less competition. However, preliminary numbers on pending sales in June show that activity may have stabilized during the second half of the month alongside rates. This represents good news for buyers who remain eager to buy as the pace of new listings combined with slightly fewer sales equates to more options for them to choose from. In addition, this uptick in inventory has helped to dial back the intense competition that characterized the first half of the homebuying seasons. While there might be fewer buyers actively searching due to higher rates, those who are in the market are likely still facing competition, pushing prices upwards. For Buyers, this could be a time to be more patient and strategic in your search. While competition might still be present, you might have a bit more leverage when negotiating offers.

For Sellers, the market might not be quite as frenetic as it was in the past year, but Los Angeles real estate remains a valuable asset. Prices are still rising, but the pace might be moderating. This could be a sign of a more balanced market in the future, but for now, it remains a seller's game with a cautious eye on rising interest rates.