Los Angeles Housing Market: Price, Trends, and Forecast for Q1 2022 By Adrian Bates
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he median home value is $926 667, up 13.7 percent from the previous year in Los Angeles, while the median price of homes has dropped by 6.7 percent. Los Angeles County months’ supply of inventory (SFH) is at 1.8 months, with median days on the market of 34. In comparison to last year, the number of new listings has decreased by 19.5 percent to 1,050. There were 1,531 homes sold, up by 0.3 percent from the previous year. HOME VALUES HAVE RISEN across the Los Angeles metro region due to a lack of supply and strong demand. Los Angeles has appreciated at a pace of 114.72 percent over the last ten years, according to NeighborhoodScout.com. This equates to a 7.94 percent yearly real estate appreciation, putting Los Angeles in the top 10 percent of all cities for real estate appreciation. The market has gained 15.9 percent in the previous year and 3.19 percent in the last quarter. If the market in Los Angeles remains stable, it is expected to increase by 13.40 percent. BECAUSE OF ITS ENORMOUS POPULATION, Los Angeles is currently more inexpensive for renters than for buyers. The state’s price-to-rent ratio is 28.73 and is expected to stay that way in the first quarter of the year. On average, rent for a studio apartment in Los Angeles jumped by 4% in the last month to $1,550, the average rent for a 1-bedroom
apartment increased by 4% to $1,600, twobedroom apartment rents on average are at $2,993 a rise of 11% from the previous year and 1% from month to month. A three-bedroom apartment costs $4,250 on average. This is a 7% increase over the previous year. FOR ALL TYPES OF MORTGAGES, Los Angeles purchasers are receiving mortgage loans with interest rates of 3% or less. Since the start of the Covid -19 epidemic, these rates have been at historic lows, giving purchasers a lot of buying power and causing a lot of demand. Mortgage rates are expected to rise by 4% in 2022, according to real estate analysts. The rate is still favorable for securing a loan, therefore demand will continue to be strong. AS LOS ANGELES CONTINUES TO BE ONE OF THE FASTEST-GROWING CITIES in the United States, there will be more demand for buyers and investors. With less, construction of new homes may take place, supply will still be less than the present demand which means housing prices will still be high. 2022 will see continued growth in home value and competitive buyers, but with a steadier and more moderate pace. MARCH 2022 | 41
