The Los Angeles Real Estate Market May Finally Be Slowing Down

Real estate sales drop 21 percent in past year

By Dolores Quintana

The Los Angeles real estate market is showing signs of being affected by the rising levels of inflation and mortgage rates as the year progresses. 

New data from Core Logic shows that the real estate market sales in May of 2022 are possibly the worst in 34 years, dropping 16 percent from the heights of May of 2021, as reported by CBS. Sellers have also started cutting the listing prices because buyers are having difficulty with the increase in mortgage rates and the country’s rising inflation. This has made potential buyers much more cautious about jumping in on a sale. 

These price cuts, which are happening not just in Los Angeles, but all over the United States, are a warning sign that the real estate’s golden period may be coming to an end. Still, this doesn’t necessarily mean that home prices are dropping and even with the current conditions in the market, most home sales are still being purchased for more than the listing’s price. 

Core Logic has also reported that median monthly payments in Los Angeles have increased 40 percent from 2021 to 2022. Real estate experts blame this on the high prices of homes and mortgage rates for this occurrence according to CBS News.com. 

Yolanda Cortez, an L.A. area agent at Century 21 Realty Masters told the Los Angeles Times, “I have buyers who are now kind of at a standstill.” Cortez added that because of the interest rates rising, buyers who had other plans are being forced to consider areas like the Antelope or Victor valleys in the high desert which are 60 miles from the Los Angeles city center. 

All of this is causing a domino effect of fewer homes going into escrow, and a rising inventory of homes for sale which is causing sellers to have to make changes. The number of homes for sale that has reduced their listing prices has doubled in the last year. In fact, 16.2 percent of home listings in Los Angeles County have cut their price in the last four weeks. This is up from 7.5 in the same period last year.

Altos Research’s founder Michael Simonsen feels that even though there are buyers who are now priced out, he thinks that other buyers may have hit the pause button for different reasons. With inventory rising, those who can buy have decided not to which has caused a slowdown to become real. 

Simonsen said, as quoted by the Los Angeles Times, “Buyers know they can wait maybe until the summer and have more selection.”

Related Posts

Marina del Rey Sportfishing: A Great Day on the Water

June 14, 2024

June 14, 2024

Fishing is a pastime like no other. You can experience the nostalgia of that pastime in real time at Marina...

Fatal Altercation Outside Santa Monica Pub Leads to Homicide Charge

June 14, 2024

June 14, 2024

Venice Resident Charged in Death of Jameson’s Pub Manager A man has been charged with homicide following a fatal altercation...

Laurene Powell Jobs Adds Another Malibu Pad to her Paradise Cove Portfolio

June 13, 2024

June 13, 2024

This Acquisition Marks Powell Jobs’ Fourth Property in the Upscale Enclave, Adding to Three Adjacent Parcels She Has Acquired Over...

Former HR Chief of Santa Monica Accuses City of Racial Discrimination

June 13, 2024

June 13, 2024

She Was Selected in 2018 as the First African American to Hold That Position Within City Leadership, According to the...

Juneteenth Art Exhibition Set for Abbot Kinney Boulevard

June 13, 2024

June 13, 2024

The Event Features Works by Twelve Prominent Black Artists From Los Angeles An art exhibition titled “FREEDOM” will open at...

Chris Pratt and Katherine Schwarzenegger Cut Price on Palisades Home by $6.5M

June 12, 2024

June 12, 2024

The couple purchased the property in June 2018 for $15.6 million and extensively remodeled it While actor Chris Pratt’s box-office...

Hang-Ten Therapeutics-Surf Therapy for Kids: Catching Waves and Finding your Calm

June 12, 2024

June 12, 2024

A different type of therapy is making waves in Los Angeles. Hang-Ten Therapeutics, founded by Naomi Matanick, a licensed pediatric...

Jinky’s Cafe is Returning to Santa Monica

June 12, 2024

June 12, 2024

The Development Comes After Months After the Franchise Closed Its Previous Santa Monica Storefront By Zach Armstrong Several months after The Independence,...

Venice Canal Attack Suspect Appears in Court

June 12, 2024

June 12, 2024

He faces a lifetime prison sentence without the possibility of parole By Zach Armstrong The man who allegedly raped and...

Lawsuit Filed Over Pacific Palisades Property Foreclosure: Report

June 11, 2024

June 11, 2024

The Dispute Over the Site Dates Back to 2014 The owners of a Pacific Palisades residential site are fighting to...

Shutters on the Beach Brings Beachside Spring Celebrations 

June 11, 2024

June 11, 2024

As spring unfurls with super blooms and sunsets after 7pm along the California coast, Shutters on the Beach emerges as the most...

Hotel Casa Del Mar: The Epicenter of Springtime Diversions

June 11, 2024

June 11, 2024

Hotel Casa Del Mar stands as a beacon of vibrant coastal charm on Santa Monica Beach. Perfectly poised, the hotel’s...

New Digital Art Festival to Launch This Month in Santa Monica

June 10, 2024

June 10, 2024

The New Series Will Take Place Across 24 Events at 17 Different Venues The DNA Festival Santa Monica, a new...

Candlelight Vigil to Be Held for Venice Canal Attack Victim

June 10, 2024

June 10, 2024

Candles Will Be Provided for All to Participate in the Tribute By Zach Armstrong A candlelight vigil for Sarah Alden, the...

Gladstone’s Unveils New Summer Menu and Cocktail Offerings

June 10, 2024

June 10, 2024

This Comes Several Months After the Restaurant’s Staff Joined Forces for a New Type of Ownership The historic beachside restaurant...