August 17, 2022 #1 Local News, Information and Event Source for the Century City/Westwood areas.

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

Firefighters Contain Beverly Crest Brush Fire

August 16, 2022

August 16, 2022

No damage reported in Monday afternoon incident By Sam Catanzaro Firefighters from multiple departments contained a brush fire that broke...

Los Angeles Officials Propose Outright Citywide Ban on Oil Drilling

August 16, 2022

August 16, 2022

Ordinance would prohibit new oil and gas extraction and phase out existing extraction operations Last week the Los Angeles City...

Passenger Cars Arrive for LAX’s Automated People Mover

August 15, 2022

August 15, 2022

The first passenger cars have arrived at LAX that will be part of the airport’s automated people mover. .Video brought to...

Bonin Targets Sawtelle Parking Lot for Community Space

August 13, 2022

August 13, 2022

11312 W. Idaho Avenue parking lot subject of City Council motion By Dolores Quintana City Councilmember Mike Bonin has proposed...

Column: Time to Crack Down on Vacant Homes’ Owners

August 12, 2022

August 12, 2022

By Tom Elias, Columnist ​​There is no doubt California has a housing shortage. That’s fact even in the wake of...

Metro To Hold Community Meetings About Potential Green Line Extension

August 12, 2022

August 12, 2022

By Dolores Quintana Los Angeles Metro is holding a series of public meetings to discuss extending the Metro C or...

LA City Council Approves Expanded Anti-Camping Ordinance

August 11, 2022

August 11, 2022

Bonin one of three not votes in expansion of LAMC section 41.18 Los Angeles City Council has banned homeless encampments...

Review: A Santa Monica Restaurant’s New Happy Hour is Top-Notch

August 10, 2022

August 10, 2022

By Dolores Quintana Birdie G’s in Santa Monica has a new Happy Hour and it is something special. For one...

Missouri Place: Let’s Celebrate a Real Victory

August 10, 2022

August 10, 2022

Brentwood resident Tom Safran is known for being a world-class builder of affordable housing.  He is really in the business...

Best of Century City-Westwood Awards Voting Now Open

August 9, 2022

August 9, 2022

Cast your vote to support your favorite local businesses  Voting is now open for Century City-Westwood News’ annual Best of...

Another Mountain Lion Dies After Being Hit by a Car

August 9, 2022

August 9, 2022

P-89 found dead along the shoulder of the 101 Freeway in Woodland Hills last month By Sam Catanzaro Another mountain...

City Council Sends Initiative to Ballot That Would Require Hotels to House Homeless in Empty Rooms

August 8, 2022

August 8, 2022

LA City Council unanimously approves measure for November ballot By Dolores Quintana Los Angeles City Council last week voted to...

Sawtelle Residential High-Rise Complete

August 8, 2022

August 8, 2022

The first high-rise residential development built west of the 405 in over 40 years is now leasing luxury apartments. Learn...