It was shaping up to be a banner year for Los Angeles real estate. A complete recovery of around 110,000 annual home sales will likely occur in 2019-2020, as end user demand in Los Angeles County is buttressed by a Great Confluence of Baby Boomers (Boomers) and first-time buyers who are lured by further employment (needed to accommodate population growth of roughly 1% annually since the beginning of the Great Recession). The current housing market features a cooldown that has seen a decrease in sales. We should keep in mind that only 30% of Californians own a home so the door is wide open for opportunity and new sales, particularly with first time buyers. The Los Angeles Housing Market Forecast Over the past year, properties in Los Angeles have risen by 2%. The median price of an average house in Los Angeles was 750635 USD on 2020-11-26. California Association of Realtors in its June housing sales report said Realtors were feeling optimistic but a lack of supply is impeding the California real estate market recovery.. Condo prices in LA County rose $9,000 from July and are up $44,000 since last August. Even with these trends and forecasts, some attention should focus on the current global pandemic. Real estate values are considered a lagging indicator of market shocks, according to Emile L’Eplattenier, chief real estate analyst and managing editor for TheClose.com. The real estate market was a bit more balanced for buyers and sellers before the coronavirus pandemic led to shelter-in-place orders and a sharp decline in housing market activity, though multiple offers on a home were still common. It's time to start worrying about the housing market again because it is completely overheated, with YoY median U.S. home price growth around 12% in 2020. Photo courtesy of marisolmalibu.com. | California Housing Forecast | Los Angeles Houses for Sale | Will House Prices Fall? Like the stock market, this is sometimes spot on, but not always. California’s housing market is expected to “deteriorate” over the coming months. 3 Year Forecast: UP Forecast Accuracy: 78% The forecast for the trend in the Los Angeles housing market for the 3 years ending with the 3rd Quarter of 2021 is UP. That’s likely due to a renewed confidence in the US and California economy and the health of Silicon Valley. The 90012 zip code includes Chinatown, the Civic Center, Elysian Park, Victor Heights, parts of the Arts District and Bunker Hill, and most of Little Tokyo. Yet for those with the funds, luxury home sales are rocketing. Buyers are finding some reprieve in prices. The current housing market features a cooldown that has seen a decrease in sales. Not only are sales decreasing, but, prices are increasing in various locations. It’s not easy to predict though when people are talking real estate bubbles, NAFTA cancellations, Brexit, skyrocketing prices, vacillating oil prices, reduced immigration, and presidential elections. And with fewer homes on the market, it’s a sellers market. After a lull in housing and economic activity, it looks like the spring market is starting strong. Californias economy grew 4.7% in the 12 months ended in February compared to the national rate of 2.8%. Home sellers want to know where the market is going in the next 3 months to 6 months. August’s home sales were the best in 14 years as a  number of factors continue to drive interest in home buying in 2020. California Recession Factors to consider: With the potential crash of the stock markets, before or after the elections, we’d have to expect luxury home sales and prices will also recede. Compared to August 2020, sales increased by 5.8%. Prices instead are forecast to rise 3% in Los Angeles County by April 2021, 5% in Orange County and 6% in the Inland Empire, CoreLogic estimated. Factors Affecting House prices and Availability in LA. Home Prices | Will the Housing Market Crash? | Boston Home Prices | New York Home Prices | House Prices Tampa? In other words, when tested against historical data, the forecasting methodology was correct 78% of the time. California Association of Realtors in its June housing sales report said Realtors were feeling optimistic but a lack of supply is impeding the California real estate market recovery.. For wealthy investors, a few years is well worth the wait. According to the October 2020 Los Angeles County real estate market report, the median sale price for single-family homes is up to $730,000, with homes selling very quickly, on the market for an average of only 29 days. Original copy posted March 2013. The likely reason for that is lower income buyers simply have even less income to buy and of course the high prices. Doing so helps you to understand what you can afford upfront, rather than pinch pennies after putting down an offer and potentially experience disappointment later on. Nixza Gonzalez - April 16, 2019. It’s good to share!! | Florida Real Estate | Linkedin | Facebook  |  Stock Market Forecast 2021. This means the housing demands are greater than the supply; consequently, some of the buyers are normally priced out due to the steep property value. Realtors. Sellers in Chicago, Los Angeles and Philadelphia were especially prone to pullbacks. Screenshot courtesy of CAR.org. Los Angeles is a great place to live. Low home affordability continues to depress buyers in Los Angeles and across California. We can speculate that homes will rise in price for the next 4 years. Updated September 7, 2020. Bookmark this page and return for further forecasts, predictions and market data for most major US cities including  Los Angeles, New York City, San Diego, San Francisco, Houston, Miami, Dallas, Phoenix, Denver, Seattle, Chicago, Boston, Tampa, Charlotte, Orlando, Anaheim, Beverly Hills, Malibu, San Jose, Fresno, Santa Clara, Mountainview, Palo Alto, Encinitas, Escondido, Thousand Oaks, Pasadena, Santa Ana, Irvine, Fontana, Moreno Valley, Bakersfield, Alameda, Oakland, San Mateo, Santa Clara, Walnut Creek, Vallejo, Napa, Citrus Heights, San Rafael, Huntington Beach, Long Beach, Palm Desert, Palm Springs, San Bernardino, Lakewood, Compton, Inglewood,  Torrance,  Oceanside Carlsbad, Riverside, Las Vegas, Reno, and Charleston. Screenshot courtesy of CAR.org. Santa Monica 90402 – Average home price: $3,237,500, Hermosa Beach 9025 – Average home price: $1,693,500, Lincoln Heights/Montecito 90031 – Average home price $458,500 +14.6%, City Terrace  90063 – Average home price: $320,000 +18.5%, Marina Del Rey 90292 – Average home price: $2,157,500 +23%, Manhattan Beach 90266 – Average home price: $2,100,000 +10%, Compton – 90220 – Average home price: $285,000 +9.8%, Playa Del Rey 90293 – Average home price: $1,517,500 +26.5%, Toluca Lake Studio City  91602 – Average home price: $1,022,500. Live Webinar Format. Cher saves you time and money by streamlining the homebuying process saving you thousands on closing costs. Are you okay with that? California Housing Market Home Inventory Timeline. Home Price Trends courtesy of S&P Corelogic Case Shiller. California Housing Market Stats August. The real estate market in Los Angeles can be termed as a seller’s market. The situation may become worse than what San Francisco, Vancouver, and Toronto have been through, and what Miami, New York, and Boston may be into now. However, the major issue with LA is its lack of affordability. A lot depends on the political climate and interest rates. Houses for sale in Los Angeles County and Orange County are in short supply and new residential development is not keeping pace. Updated September 7, 2020. Read more on the best zip codes in the US for investors and homebuyers. In all three, 6% of all active listings were taken off the market last week. While most construction economists believe 2020 will usher in an era of decelerated growth, there’s a surprising amount of space between some of the forecasts for key segments of the market. Los Angeles Real Estate Market Forecast. LA Curbed’s list of hot zip codes: Los Angeles’s 90012 zip code is shaping up to be the 2nd fastest growing area in the nation at 8.8% growth, 2nd behind only Gilbert AZ. Homebuying in Los Angeles in 2020 is off to a busy start. As of July 27th, the multi-family rent … Los Angeles (June 24, 2020) — In its March quarterly forecast, the UCLA Anderson Forecast revised its outlook for the U.S. economy downward because of the expected impact of COVID-19, which was then still being referred to as an epidemic. High cost of living and too high real estate prices have some businesses exiting for Arizona, Florida, Colorado, and Texas. In order to figure out predictions for the next upcoming years, we must be able to analyze the current housing market. Affordability is dropping though and only 30% of LA county residents own a home. Just recently, the city of Los Angeles allowed homes to go back on sale. The region’s housing market came into the virus era with prices surging. Even with this, the National Association of Home Builders and Wells Fargo Housing Opportunity Index designated Los Angeles with the title of least affordable housing market. Corelogic’s forecast predicts home prices nationally will have fallen 6.6 percent year-over-year by May 2021. SUBURBAN MULTIFAMILY WILL CONTINUE TO OUTPERFORM IN 2020 Buying or building in the suburbs will remain the best bet based on market performance and investment returns. Low affordability is a big driver for the strong rental market in the Los Angeles housing market 2020. The question is where to get a realistic price? Overall, the Los Angeles forecast was very good for sellers with plenty of demand and with the average price of a home hitting $690,000 last summer. In the greater Los Angeles region, single detached homes rose $22,000 to a new price of $553,000.. San Francisco Bay Area, home prices jumped $35,000 or 3.6% over last month to a new average price of $1 …