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Housing Market in Los Angeles
Los Angeles is home to over 10 million people, so how does the housing market look like under this large population influence? In the last year, there has been a nearly 30% increase in the number of houses being put to sale. Due to this larger number of homes on the market, it means fewer people need to bid on homes, making the final home value sold to be less than if there were major bidding wars. In fact, there’s been an 8.8% decrease in homes being sold above asking price, meaning close only about 26.3%. The average home value is $694,200 which is just 4.5% higher than a year ago. Accordingly, there’s been a nearly 12% decrease in homes sold since last February as well. Despite all this, the prices do maintain relatively high for this area, meaning only 30% of people own homes. In addition, for every home on the market, there are generally 2 offers put and the home is sold in 49 days.
In the next year, home prices are expected to stay relatively similar, with an average of 5% increase, or $40,000 gain. In line with this, there’s an 84% probability for the housing prices to increase during this upcoming period. The average home sold was $655,700 in the last year, however, today is close to $800,000. The average rent price is at $3,500. It is predicted for rent to have an increase of 5% increase.
There are 82 neighborhoods in the LA area, with Brentwood being the most expensive neighborhood having the average listing price at $3.2M. According to the neighborhoods with the highest real estate appreciation rates, these are some of the best neighborhoods to invest in:
- Santa Monica Blvd to N Hudson Ave
- Lincoln Blvd to Broadway St
- W Sunset Blvd to Gordon St
And we can’t forget about other neighborhoods such as
- Highland Park