Real estate listing site Redfin says the Los Angeles home market is entering a "new phase." Considering the last phase involved 60-person bidding wars; all-cash, inspection-waiving crazies; and record-breaking price increases, prospective buyers are no doubt thinking that it's about freaking time. That is, if they aren't mired in burnout, holy-hell-I-just-got-priced-out-of-the-market panic, and/or self-pity parties. With prices up nearly 29 percent between July 2012 and July 2013, plus rising interest rates, the median house in LA now costs $600 more a month than it did a year ago. In late June, buyers started dropping out; they're "jaded and are passing on houses or temporarily stepping back from house hunting because they don't want to compete in cutthroat bidding wars," according to one agent. And the numbers bear it out. While earlier this year it was "common" for properties to get 30 offers, in July, it was more common to see only five to 10.
Last week's release from research firm DataQuick confirmed that things have slowed in a major way--while the number of sales increased, the median home price in LA county was unchanged from June to July. Redfin's crystal ball seems to indicate that prices will continue to climb thanks to low inventory, but at a much slower rate than in the past year. They also point to "up-and-coming" neighborhoods like Highland Park and Mount Washington as still-affordable neighborhoods. Except that prices are up 36 percent in both areas, so maybe it's time to acknowledge that they've up-and-came?
· Los Angeles County Housing Market Entering a New Phase [Redfin]
· Southland Home Sales Jump in July [DataQuick]