Welcome our November 2023 update on the Los Angeles real estate market. It’s been a rollercoaster ride this year, with prices surging, falling, and now making a comeback. So, what’s the scoop in not only Porter Ranch but Los Angeles right now? Let’s dive in with Scott Himelstein, Los Angeles Realtor, and find out!

Last year, we saw home prices skyrocket in the first half and then take a 15% dip in the latter half, making it quite an eventful year. However, this year started with a shift, and prices began their ascent. We not only recovered what was lost last year but even surpassed it. Prices have been on the rise throughout the entire year, making it a fascinating market to watch. Now, the burning question on everyone’s minds: what’s happening with interest rates? Up until recently, they were hovering above 8%, which is a significant factor in the real estate market. Currently, if we look at the median home prices year over year in Los Angeles County, they’re up by just over 7%, creeping closer to 8%. However, when we zoom in on a month-over-month basis, we’re up by less than half a percent. So, for the past month or so, prices have been relatively flat, just rising over .5% the last 30 days.

But remember, prices are just one piece of the puzzle. They are what we call a “lagging indicator.” When a home closes escrow today, it’s likely the result of a deal negotiated 30 to 45 days ago. To get a real-time sense of the market, we need to look at other indicators. One of my favorite indicators to gauge the market’s health is “days on market.” And what’s interesting right now is that we’re starting to see an increase in price reductions. This is often one of the first signs that the market is cooling down slightly. Even with higher interest rates, homes are staying on the market longer, and sellers are having to reduce prices to make the sales happen.

So, you might be wondering, what’s causing this shift? Well, the inventory is playing a significant role. Year over year, the total number of homes for sale has increased by 10%, which is expected as we head into the holiday season. This year’s numbers are unique, and it will be fascinating to see how things unfold. But are we heading into a buyer’s market? Not quite yet, because the inventory is incredibly low at the moment. For instance, in Porter Ranch’s 91326 area, there are only 61 homes for sale, with just seven priced under a million and 14 under 1.4 million. This means that in the lower price range, the market is still incredibly competitive, with multiple offers and homes selling over the list price. However, the story changes when you move into the higher price range, especially over 1.5 million. With interest rates hovering around 7.5%, the monthly payments on these homes can be quite substantial, affecting buyer demand.

Now, here’s the exciting news: interest rates have dropped over the past week. From over 8%, they’re now sitting at about 7.75%. This is fantastic news for potential buyers, and it means there are still excellent opportunities in the market. If homes are priced right, you can expect multiple offers. And if a house is move-in ready or recently remodeled, it’s almost guaranteed to attract a flurry of offers. Buyers often hesitate to tackle extensive remodels when facing high monthly payments.

So, there you have it—the latest update on the Los Angeles real estate market for November 2023. If you have any questions or want to dive deeper into this market, feel free to give us a call at 818-396-3311. We’re here to help you navigate this dynamic and exciting real estate landscape.