Los Angeles Real Estate Market Update - March/April 2024

The Fed decides to hold rates steady but still plans to cut rates three times by end of 2024: At their latest meeting last week, the Federal Open Market Committee (FOMC) decided to leave the federal funds rate unchanged. The decision was widely anticipated, after recent economic reports suggested that inflation remained sticky, and the overall economy continued to be solid. The focus of the release was mostly on the Fed’s projections for future rate cuts, which was in line with their previous expectation of three rate cuts for the year 2024.

In February, the California housing market showcased remarkable resilience despite the backdrop of rising mortgage interest rates. According to the latest report from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), existing, single-family home sales surged to 290,020, marking a substantial 12.8 percent increase from January's figures.

This surge in sales reflects a robust momentum, echoing sales levels not observed since September 2022. Moreover, the statewide median home price saw a notable uptick, reaching $806,490, up 2.2 percent from the previous month and a significant 9.7 percent increase compared to February 2023.

Is It a Buyer's or Seller's Housing Market?

Given the current landscape, the Los Angeles real estate market leans towards being a seller's market. The combination of robust demand, limited inventory, and continuous price appreciation indicates favorable conditions for sellers. However, with the anticipated moderation in sales due to rising interest rates, buyers may find opportunities to enter the market, albeit in a competitive environment. As the market evolves, both buyers and sellers should remain vigilant and adaptable to changing conditions.

The Los Angeles Metro Area reflects a robust real estate market, with the median sold price of existing single-family homes standing at $790,000 in February 2024. This marks a notable increase from the previous month, showing a 5.3% month-over-month rise and a significant 11.3% increase compared to February 2023. Moreover, sales in this region have also seen a substantial uptick, with a 13.2% month-over-month change and a 6.7% increase year-over-year. Such steady growth underscores the desirability of properties in the Los Angeles Metro Area.

If you are a Seller, this is great news, however it is still a challenge for Buyers with low inventory and high interest rates

to find homes that fit their needs and budget.

Please don't hesitate to contact us with any questions big or small.

Source