Open Houses are Back and Housing Dynamics Shift
This year’s housing market in Los Angeles County has seen a noticeable shift compared to last year. There are more FOR-SALE signs dotting neighborhoods, an increase in OPEN HOUSE directional arrows, and extended market times.
Since hitting a low of 60 days at the end of March, the Expected Market Time has grown to 80 days. Despite this shift, many sellers continue to test the market with high asking prices, resulting in an increase in overpriced homes. As market times lengthen, expect to see more price reductions reflecting the evolving dynamics of the market
Active Listings
The active listing inventory in the past couple of weeks increased by 461 homes, up 5%, and now sits at 10,547 homes. In May, 23% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 2,117 less. 1,226 more sellers came on the market this year compared to May 2023. Last year, there were 7,514 homes on the market, 3,033 fewer homes, or 29% less. The 3-year average before COVID (2017 to 2019) was 12,885, or 22% more.
Demand
Demand, the number of pending sales over the prior month, increased by 99 pending sales in the past two weeks, up 2%, and now totals 3,932. Last year, there were 3,833 pending sales, 3% fewer than today. The 3-year average before COVID (2017 to 2019) was 5,789, or 47% more.
Los Angeles County Housing Summary
- With supply rising faster than demand, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, increased slightly from 79 to 80 days in the past couple of weeks. It was 59 days last year, hotter than today. The 3-year average before COVID (2017 to 2019) was 67 days, also faster than today.
- In the past couple of weeks, the Expected Market Time for homes priced below $750,000 increased from 56 to 57 days. This range represents 26% of the active inventory and 36% of demand.
- The Expected Market Time for homes priced between $750,000 and $1 million increased from 53 to 58 days. This range represents 18% of the active inventory and 26% of demand.
- The Expected Market Time for homes priced between $1 million and $1.5 million increased from 73 to 75 days. This range represents 18% of the active inventory and 19% of demand.
- The Expected Market Time for homes priced between $1.5 million and $2 million increased from 90 to 92 days. This range represents 10% of the active inventory and 9% of demand.
- In the past two weeks, the Expected Market Time for homes priced between $2 million and $3 million decreased from 148 to 137 days. The Expected Market Time for homes priced between $3 million and $4 million increased from 165 to 199 days. The Expected Market Time for homes priced between $4 million and $8 million decreased from 359 to 330 days. The Expected Market Time for homes priced above $8 million increased from 593 to 907 days.
- The luxury end, all homes above $2 million, account for 28% of the inventory and 10% of demand.
- Distressed homes, both short sales and foreclosures combined, made up only 0.5% of all listings and 0.7% of demand. Only 36 foreclosures and 22 short sales are available to purchase today in all of Los Angeles County, with 58 total distressed homes on the active market, up four from two weeks ago. Last year, there were 46 total distressed homes on the market, similar to today.
- There were 4,394 closed residential resales in May, up 1% compared to May 2023’s 4,355 closed sales, and up 6% from April 2024. The sales-to-list price ratio was 100.0% for all of Los Angeles County. Foreclosures accounted for just 0.5% of all closed sales, and short sales accounted for 0.1%. That means that 99.4% of all sales were good ol’ fashioned sellers with equity.
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