Los Angeles Real Estate Market Update for 2024

The Los Angeles real estate scene just weathered what could be described as the most significant crash in its recorded history. This statement might seem shocking, especially if you recall the turbulent times of 2010. But let's delve deeper into what has transpired over the last couple of years.

A Steep Decline in Sales Volume

In the span of two years, we witnessed a dramatic 40% drop in sales volume across Los Angeles. This downturn spelled disaster for many real estate agents. However, the impact on homeowners has been a mixed bag, and it's crucial to understand the nuances of this shift.

The Fed's Role and the Market's Response

The turning point came in early 2022 when the Federal Reserve announced rate hikes to combat inflation and cool the economy. The consequences were immediate and significant for the real estate market. Mortgage rates soared to the sevens and eventually peaked in the eights by the end of 2023. Fortunately, with the Fed's decision to halt further rate increases, we've seen a reduction in rates to the mid-sixes, signaling that the worst may be behind us.

Regional Market Trends

Now, let's explore how different areas within Los Angeles fared during this period:

The West Side

  • Average Price Drop: 8% from the previous year.
  • Sales Volume: Decreased by 18% annually and 43% over two years.

Hollywood, West Hollywood, Miracle Mile

  • Average Price: $2.6 million.
  • Sales Volume: Plummeted by 55% over two years.

Hollywood Hills

  • Average Price Increase: 2% over two years.
  • Sales Volume: Down by 47% over the same period.

San Fernando Valley

  • Average Price Stability: Virtually unchanged year-over-year.
  • Sales Volume: Down by 22% annually, and 42% over two years.

South Bay

  • Average Price Stability: Maintained over the year.
  • Sales Volume: Decreased by 16% annually and 40% over two years.

Southern Los Angeles

  • Average Price Drop: 6% year-over-year.
  • Sales Volume: Decreased by 16% annually and 30% over two years.

Northeast Los Angeles (Nila)

  • Average Price Stability: Remained flat from the previous year.
  • Sales Volume: Decreased by 28% annually and 48% over two years.

Burbank

  • Average Price Drop: 2% from the previous year.
  • Sales Volume: Down by 23% annually and 34% over two years.

Pasadena

  • Average Price Increase: 2% from the previous year.
  • Sales Volume: Down by 23% annually and 35% over two years.

Glendale

  • Average Price Increase: 5% from 2022.
  • Sales Volume: Decreased by 24% annually and 47% over two years.

The Road Ahead

The real estate market is ever-evolving, and understanding these changes is crucial for homeowners and potential buyers. If you're curious about how these trends affect your neighborhood, street, or home, feel free to reach out. Let's have a detailed, private conversation about your real estate needs and navigate this dynamic market together.

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