If you’re thinking of buying or selling a home in LA this year, it’s definitely a good idea to read up on what the real estate market’s been doing in the past few months—and what it’s predicted to do in the coming year. Here’s your guide to all things LA real estate this summer of 2019.
Home Sales are On the Rise
Towards the end of 2018, rising mortgage rates led experts (and some buyers) to believe that the LA real estate market was headed for a cool-down. But then 2019 threw us a surprising twist—falling mortgage rates! The result? Rising home sales, of course.
May’s numbers showed a 2.6% increase in home sales from April 2019—reaching the highest level of sales in 11 months, since the previous May.
Home Prices in LA are Rising… But More Slowly
Increased sales mean more buyers—and more competition. More competition means buyers scrambling to get ahead of their fellow buyers with high offers, or even bidding wars. And high offers and bidding wars mean climbing prices.
April 2019 saw a new price peak… but the climbing didn’t stop there. In May, the statewide median home price reached another all-time record of $611,190—up 1.4% from April and 1.7% from last May.
This is great news for sellers, but for buyers there’s some good news here, too. Home prices are rising—but at the slowest rate in years.
Mortgage Applications are On the Rise (Nationally)
Thanks to low, low interest rates, more and more home searchers are making the transition from browsers to serious buyers—and therefore starting the mortgage application process. In fact, the Mortgage Bankers Association found that applications for new home purchases was up 20.1% compared to a year ago.
Active Listings Are On the Rise
While the LA real estate market saw declining inventory through most of 2018, 2019 has started to see an increase in the number of homes for sale—a 7.4% increase from a year ago. This is great news for buyers, especially those frustrated by the lack of options or the incredibly stiff competition. More homes mean more choices… and less rush to make an offer to beat out other buyers.
LA is Moving Towards a Buyers Market
Low interest rates, lots of homes for sale, leveling prices… these are all factors for a shift in favor of buyers (despite the record-high prices). This is true pretty much across the US, with similar factors shifting national markets towards buyers, and LA is no exception. Prices are slowing, more homes are popping up for sale, and the Rent vs. Buy Index leans in favor of homeownership.
Thinking of Buying or Selling in LA?
Are you reading up on the real estate market because you’re planning to buy or sell a home in LA County? Then it’s time to contact Brad Korb Real Estate Group. We’re here to help you explore the area, learn more about the real estate market, and find the right home—or list yours with ease.