Los Angeles is the second-most populous city in the United States and one of the most desirable places to live. The city’s real estate market has been experiencing significant changes over the past few years, with some areas becoming more affordable, while others remain unaffordable. The question is, is Los Angeles a buyers or sellers market?
Los Angeles Housing Market: Is It Favoring Buyers or Sellers?
The answer to whether Los Angeles is a buyers or sellers market is not simple. It depends on the area, type of property, and price range. For example, the median home price in Los Angeles is $750,000, which makes it a sellers’ market for properties priced below $600,000. Properties in the $600,000-$1.5 million range tend to be more balanced, while those above $1.5 million can be a buyers’ market.
Another factor impacting the Los Angeles real estate market is the pandemic. The pandemic has resulted in a shift in demand for properties, with more people looking for spacious homes, outdoor areas, and proximity to nature. As a result, homes in suburban areas and those with outdoor space have become more desirable, while properties in densely populated areas have become less attractive. This shift in demand has made it a buyers’ market for certain types of properties, while sellers of other properties are still enjoying a sellers’ market.
Examining the Trends and Factors Impacting Los Angeles Real Estate Market
The Los Angeles real estate market has been on an upward trajectory since the 2008 recession, with home prices appreciating at an annual rate of 4.4% over the past ten years. However, the pandemic has disrupted the market, resulting in a slowdown in the rate of appreciation. In 2020, home prices appreciated at a rate of 3.5%, and it is expected to slow down further in 2021.
Another trend impacting the Los Angeles real estate market is the increasing popularity of co-living spaces. As the city becomes more expensive, co-living spaces provide an affordable alternative for young professionals and students. This shift in the market towards co-living spaces has resulted in an increase in the number of co-living companies and properties in the city.
In conclusion, the Los Angeles real estate market is neither a buyers nor a sellers’ market, but rather a mixed market. The market is impacted by a variety of factors, including the area, type of property, price range, and the pandemic. Despite the pandemic’s impact, the Los Angeles real estate market remains one of the most desirable in the world, with high demand for properties in the city and its surrounding areas.