Los Angeles Housing Market

California’s housing market continues to grow and revive in 2021, after a good start in January. Of course the major portion of California’s real estate market sales take place in the Greater Los Angeles, Riverside, Orange County and San Diego counties.

This is the most fascinating and diversified real estate market in the country, serving every conceivable type of property and buyer. Now in May, home prices are charging ahead and it is indeed a seller’s market.

Zillow Los Angeles Home Price Forecast

Zillow estimates the average house price in Los Angeles is up to $932,000 and believes that price will rise 12.3% by next April. NAR data shows Los Angeles house prices overall only grew .4% in March to $668,000. That price is still up by 17% over March 2020.

Los Angeles home price timeline. Screenshot courtesy of Zillow.

Redfin Report on Los Angeles sales to list price ratio growth:

Los Angeles County Prices In April 2021

This new report shows home prices have grown on average over the last 6 months by $65,000 and homes are selling 6 days faster. LA county home prices are up $200,000 over the last year.

Los Angeles April Home Market Report — LA County Housing market report. Screenshot courtesy of issu.com and First Realty Los Angeles

Southern California Home Prices in March:

In Los Angeles County, home prices have risen 17.2% to $750,000 year over year while home sales rose 33.9%.
In Orange County, home prices went up 10.6% in March to $835,000, while sales grew 38.5% year over year.
In San Diego County, home prices went up by 15.3% to $680,000 year over year, while home sales lifted 22.4%.
In Riverside County, home prices went up 17.9% to $476,750 year over year, and sales went up 37.5%.
In San Bernardino County, average home prices rose 18.3% year over year to $429,500, while home sales rose 29.3%.
In Ventura County, average prices went up 12.5% to $658,000 and home sales went up 24.2%.

Screenshot courtesy of NAR. Sales growth Rebound So Cal.

California Realtors Forecast

homes prices southern California — Screenshot courtesy of CAR.

Buyers will want to learn more about the full US housing market forecast and what is driving the overall California housing market and the markets in San Diego, San Francisco, San Jose and Sacramento.

Why Will Home Prices Rise Strongly?

The end of the Covid 19 threat will see some high-density renters and buyers return to metro LA however fast rising prices will make that a challenge except for the most wealthy. Restaurants, beaches, hotels, tourism, and small businesses will reopen. Some will reopen after bankruptcies.

The biggest factor for home prices is NIMBYism and the high cost of building (materials and labor). Even with the low likelihood of getting building permits, developers will find housing labor, gasoline and materials climbing faster. NIMBY’s and anti-development regulations will stunt new home building. With a limited supply, prices can only rocket across Los Angeles. And taxes must be paid, and they will be passed onto the buyers.

Home Prices Well Up Year over Year

Despite the pandemic surge, home prices continue to rise across California. Home sales grew 13.5% year to year, and prices rose 15% year to year. The market has only 1.9 months of housing.

The exodus may actually be helping to keep LA home prices under control. Home sellers want to know where the market is going in the next 3 months to 6 months. That depends on the economic restart and Fed stimulus aid payments.

California Home Price Growth

Los Angeles Neighborhoods with the largest price growth last 6 years.

Chart data courtesy of laalmanac using Zillow Data.

City / Community	2021	2020	2019	2018	2017	2016	Price Growth Rate in 6 years
Beverly Hills	$2,767,744	$2,751,379	$2,481,355	$2,226,040	$1,809,546	$1,467,303	87.51%
Los Angeles (Hancock Park, Western Wilton, Wilshire Center, Windsor Square)	$3,392,654	$3,353,369	$3,001,153	$2,751,014	$2,304,153	$1,941,716	72.70%
Los Angeles (Griffith Park, Hollywood, Los Feliz)	$1,789,835	$1,799,966	$1,627,317	$1,441,524	$1,254,727	$1,060,173	69.78%
South Pasadena	$1,424,520	$1,401,505	$1,324,345	$1,192,196	$1,022,549	$844,472	65.96%
Los Angeles (Hancock Park, Rampart Village, Virgil Village, Wilshire Center, Windsor Square)	$1,674,475	$1,647,379	$1,525,317	$1,374,918	$1,165,817	$998,535	64.98%
San Marino	$2,430,196	$2,440,079	$2,312,175	$2,027,963	$1,794,724	$1,510,160	61.58%
Beverly Hills	$3,476,019	$3,448,545	$3,126,124	$2,870,630	$2,518,880	$2,159,817	59.67%
Manhattan Beach	$2,806,205	$2,779,714	$2,573,088	$2,372,951	$2,033,939	$1,757,877	58.13%
Los Angeles (Echo Park, Silver Lake)	$1,079,809	$1,063,800	$978,960	$901,793	$786,279	$673,080	58.05%
Pasadena	$1,616,788	$1,586,439	$1,466,929	$1,323,027	$1,165,616	$1,011,096	56.90%
Los Angeles (Hollywood, Melrose), West Hollywood	$2,943,258	$2,918,909	$2,676,707	$2,496,861	$2,205,852	$1,868,378	56.23%
Lake Los Angeles, Palmdale	$269,059	$264,688	$237,484	$225,829	$197,917	$169,760	55.92%
Los Angeles (Mt Olympus) / West Hollywood	$2,008,581	$1,978,031	$1,827,662	$1,683,634	$1,484,399	$1,270,805	55.65%
Los Angeles (Downtown Fashion District, Downtown Southeast)	$782,726	$778,011	$701,469	$678,139	$612,786	$500,109	55.57%
Santa Monica	$2,488,035	$2,481,003	$2,319,398	$2,153,253	$1,864,420	$1,596,428	55.41%
Hermosa Beach	$2,240,234	$2,196,627	$1,990,961	$1,854,260	$1,645,051	$1,420,624	54.62%
Los Angeles (Hollywood)	$1,745,080	$1,734,346	$1,579,213	$1,458,927	$1,320,925	$1,127,987	53.76%
La Cañada Flintridge	$1,867,527	$1,843,804	$1,686,791	$1,565,123	$1,401,311	$1,210,087	52.37%
Los Angeles (Cheviot Hills, Rancho Park)	$1,942,180	$1,940,244	$1,838,646	$1,706,658	$1,498,016	$1,291,058	50.28%
Los Angeles (Hancock Park, Koreatown, Wilshire Center, Wilshire Park, Windsor Square)	$1,624,199	$1,615,512	$1,565,228	$1,419,468	$1,217,691	$1,079,947	49.59%
Los Angeles (North Hollywood, Studio City)	$1,779,373	$1,749,915	$1,595,400	$1,488,666	$1,317,866	$1,174,030	49.05%
Inglewood	$650,853	$638,693	$560,395	$533,917	$490,879	$428,632	49.01%
Los Angeles (Mid-City West), West Hollywood	$2,300,154	$2,303,261	$2,146,959	$1,951,034	$1,720,256	$1,551,813	48.42%
Ladera Heights	$1,544,757	$1,522,463	$1,370,472	$1,323,829	$1,165,639	$1,029,890	47.83%
Los Angeles (Westwood)	$2,874,093	$2,868,275	$2,711,469	$2,497,602	$2,226,835	$1,946,790	47.33%
Los Angeles (West Fairfax)	$1,938,043	$1,946,512	$1,837,649	$1,664,422	$1,533,924	$1,321,328	47.31%
Lancaster	$310,808	$302,114	$266,880	$256,971	$233,052	$205,366	47.11%
Los Angeles (Arlington Heights, Country Club Park, Mid-City)	$1,274,433	$1,266,422	$1,167,833	$1,098,797	$949,063	$860,982	47.09%
Los Angeles (Mid-City, West Adams)	$962,917	$947,339	$871,964	$807,928	$734,988	$644,328	47.03%
Los Angeles (Southeast Los Angeles, Univerity Park)	$866,289	$861,918	$763,956	$740,472	$680,524	$587,607	46.68%
Beverly Hills	$6,137,833	$6,079,687	$5,611,769	$5,230,676	$4,763,676	$4,175,741	45.60%
Inglewood, Lennox	$641,211	$632,178	$556,444	$533,797	$489,805	$434,265	45.57%
Santa Monica	$4,621,647	$4,551,562	$4,352,830	$3,989,826	$3,642,068	$3,128,069	45.51%
Hi Vista, Lake Los Angeles, Lancaster, Roosevelt Corner, Wilsona Gardens	$320,197	$311,474	$275,316	$266,074	$243,276	$214,542	45.18%
Los Angeles (South Los Angeles)	$669,954	$656,609	$605,798	$599,516	$521,049	$453,440	44.81%
Los Angeles (Fairfax, Melrose, Miracle Mile, Park La Brea, Wilshire-La Brea)	$1,988,067	$1,981,943	$1,920,523	$1,778,609	$1,520,494	$1,369,137	44.76%
Los Angeles (South Los Angeles)	$609,135	$598,670	$533,030	$507,970	$470,403	$415,236	44.18%
Los Angeles (Atwater Village, Elysian Valley, Silver Lake)	$1,146,172	$1,141,785	$1,054,739	$971,432	$839,833	$793,981	43.81%
Inglewood	$735,715	$722,701	$647,272	$633,405	$569,125	$503,607	43.50%
Los Angeles (Southeast Los Angeles)	$511,350	$508,486	$446,513	$428,095	$391,070	$354,733	43.34%
Los Angeles (South Los Angeles)	$578,258	$575,269	$520,089	$493,772	$445,766	$401,395	43.32%
Inglewood	$697,038	$682,941	$591,622	$575,511	$544,939	$476,630	43.29%
Los Angeles (Hyde Park, View Park, Windsor Hills)	$832,799	$808,470	$715,635	$681,438	$635,657	$564,693	43.17%
Los Angeles (Downtown Civic Center, Chinatown, Arts District, Bunker Hill, Historic Core, Little Tokyo)	$782,253	$789,962	$719,563	$668,410	$658,804	$551,842	43.15%
Inglewood	$753,810	$728,699	$643,870	$636,901	$591,598	$509,946	42.90%
Los Angeles (Southeast Los Angeles), Vernon	$477,569	$475,712	$414,909	$398,650	$368,617	$333,305	42.73%
Athens, Los Angeles (South Los Angeles)	$544,045	$536,721	$471,049	$447,106	$417,865	$376,087	42.71%
Compton, Rancho Dominguez	$502,674	$494,895	$434,829	$420,140	$392,974	$349,162	41.74%
Compton, Rosewood, Willowbrook	$477,805	$469,491	$414,375	$399,815	$372,295	$331,644	41.56%
Los Angeles (South Los Angeles, Southeast Los Angeles)	$488,763	$478,231	$431,734	$405,352	$372,511	$338,314	41.36%
Los Angeles (East Hollywood)	$1,142,605	$1,115,744	$1,010,551	$952,212	$879,589	$789,309	41.36%
Los Angeles (Southeast Los Angeles, Watts), Willowbrook	$474,518	$465,043	$418,652	$395,814	$367,349	$329,124	41.30%
Los Angeles (Southeast Los Angeles, Watts)	$466,527	$453,234	$411,880	$386,309	$355,889	$320,960	41.21%
Culver City	$1,675,237	$1,652,962	$1,515,531	$1,470,515	$1,341,791	$1,172,642	40.96%
Juniper Hills, Littlerock, Sun Village	$344,200	$336,301	$293,317	$287,302	$268,295	$238,775	40.84%
Lake Los Angeles, Palmdale	$340,122	$331,530	$295,350	$284,583	$264,294	$235,764	40.62%
Los Angeles (South Los Angeles)	$503,487	$497,282	$448,227	$423,108	$393,116	$354,285	40.36%
Los Angeles (Sawtelle, West Los Angeles)	$1,697,468	$1,693,882	$1,620,634	$1,512,820	$1,408,513	$1,208,465	40.17%
Los Angeles (Bel Air Estates, Brentwood)	$3,508,077	$3,473,727	$3,251,603	$3,064,846	$2,807,256	$2,481,562	39.98%
Los Angeles (Bel Air Estates, Beverly Glen)	$3,171,568	$3,149,334	$2,937,492	$2,776,477	$2,556,405	$2,251,908	39.85%
Los Angeles (Lincoln Heights, Montecito Heights)	$755,500	$750,457	$689,291	$669,829	$637,680	$537,181	39.70%
Los Angeles (Baldwin Hills, Crenshaw, Leimert Park)	$1,052,206	$1,034,410	$955,196	$879,347	$823,510	$740,983	39.60%
Los Angeles (North Hollywood)	$727,821	$716,374	$623,986	$606,508	$566,391	$513,628	39.47%
Palmdale	$375,822	$366,062	$326,954	$317,463	$293,658	$263,365	38.99%
Juniper Hills, Pearblossom	$326,826	$319,671	$280,918	$273,911	$256,446	$230,152	38.90%
Los Angeles (South Los Angeles), Florence-Graham	$470,278	$462,180	$414,024	$390,575	$365,574	$333,146	38.73%
Long Beach	$528,383	$522,990	$484,979	$429,637	$402,639	$377,474	38.55%
Los Angeles (Dowtown Fashion District, South Park-South)	$770,296	$775,947	$707,775	$671,235	$639,666	$561,269	38.25%
Culver City, Los Angeles (Mar Vista)	$1,721,358	$1,716,140	$1,585,526	$1,584,688	$1,480,964	$1,241,998	38.18%

Los Angeles Condo Prices

Los Angeles County condo sales rose 23.9 % over the last year. They sold at a median price of $490,000 which is up 27.2% from 12 months ago.

Could the Los Angeles Housing Market Crash?

Is California’s debt, tax problem, business exodus, regulations, and more simply too much for Californians to keep paying such lofty prices?

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. Check more on the Stock Market Forecast predictions for 2021.

Although the volume of affordable homes available for sale remain constrained in LA County, mortgage payments have declined considerably potentially enabling more buyers to get into home ownership.

California Housing Market

Sales within the California housing market are slumping with the exception of the San Francisco region. However, sales are up strongly year over year. Buyers are finding some reprieve in prices.

Lack of Affordable Housing is Holding the Market Down

Low home affordability continues to depress buyers in Los Angeles and across California. After a lull in housing and economic activity, it looks like the spring market is starting strong. That’s likely due to a renewed confidence in the US and California economy and the health of Silicon Valley.

High cost of living and too high real estate prices have some businesses exiting for Arizona, Florida, Colorado, and Texas. That exodus may help ease keep home prices from running away again this summer.

This is the same issue in San Francisco Bay Area, San Diego, Sacramento, Florida, Denver, Chicago, and Seattle where buyers simply can’t afford the lower end of the detached housing market.

Is it instinct or just common sense that California will continue as the most desired place to live on the planet? Does the climate in San Diego, Sacramento , Bay Area, and Los Angeles, high paying jobs, interesting geography, lifestyle and recreation, make California a magnet for people around the world. Price growth is predictable.

The Telling Stats about LA’s Forecast

If buyer’s are hoping for bargains in the next 4 years, they’re unlikely to find them. Despite a dip in September, prices for homes and condos are up $24k to $30k from one year ago. Are the Asian and Persian buyers pulling out of LA?

The Trump instability and trade issue might be a pause before even more money pours into the reviving American economy. Make American Great Again, also creates excellent investment opportunities in California, paying out in $US.

jobs being repatriated back to the US from Mexico and China
employment already good and rising
the end of Obamacare?
the end of Dodd-Frank restrictions on lending
general Federal easing of real estate development expected
it will take some time for mortgage rates to rise
still isn’t enough housing to house LA’s growing population (recession)

It’s the Los Angeles housing forecast that is perhaps one of the most interesting forecasts for the US for the next few years. California’s housing developers are hard pressed to build homes to house the population. We can speculate that homes will rise in price for the next 4 years. 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.

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. Affordability is dropping though and only 30% of LA county residents own a home.

Given the nasty commutes Los Angeles workers are enduring, this housing crisis should be a top priority for the California state governor.

A few pundits are suggesting homeowners need to build granny flats in everyone’s back yard. Political battles are forming over the effect of regulations on LA’s and California’s home construction. Who will win? Will they battle Trump head to head to stop new development?

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.

Here’s the Hottest Zip Codes in Los Angeles

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. 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.

Here’s the LA Times hot zip code list:

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

Read more on the best zip codes in the US for investors and homebuyers.

LA Home Prices Fully Recovered?

The Los Angeles home price graph below courtesy of Zillow shows how prices have almost returned to pre-recession values and are beginning to level off. To forecast prices and demand for the LA region, we’d have to examine the cause of the moderation and if it’s a fact. Here’s LA’s hottest zip codes.

Is there a Housing Market Bubble?

Do you believe we’re in a California housing bubble? According to a Harvard real estate guru, bubbles don’t burst until demand dries up — an increase in unsold inventory and that’s not what’s happening. Sales are strong and California home prices are predicted to rise further.

As you’ll see from the data in this post below, there is huge demand for property. Supply is the problem.

Factors Affecting House prices and Availability in LA

Housing Demand – Demand from those with wealth for single family detached, and luxury homes
Housing Supply – Throttled, supply is far from what’s needed
Mortgage Rates – Continuing Low, especially in light of global economic slackening
Down Payment and mortgage rules – Banks are withdrawing FHA loans however some were offering down payments as low as 3%
Regional Employment – Very low and remaining low
Buyer Income – low and not rising much
Home Prices – High and rising – out of reach for many buyers – many consider LA homes grossly over-priced
Demographics – Millennials coming into family and home buying years and LA millennials have had the lowest rate of home buying (pent up demand)
Number of Renters – increasing fast
New Home Construction: slow (100k to 140k per year)
Economic-Foreign Trade – Trump expected to reduce US deficit
Election Year – Voters uncertain of what Trump will create
Taxes on Sale of Home – Tax situation is great for sellers

Realtors: Check out other posts providing realtor tips, prospecting strategies, social media strategy, and tactics used by top flight luxury realtors and even lead generation companies.

See additional housing market reports on New York NYC, San Diego CA, and San Francisco CA.

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, and Tampa.

Realtors, are you ready for some innovative real estate marketing packages? Get the visibility and sustained lead generation you need through 2022 to the next 5 years. Packaged services for Realtors in Charlotte, Tampa, Naples, Sarasota, Port Charlotte, Anaheim, San Antonio, Detroit, Cincinnati, Beverly Hills, Malibu, San Jose, Fresno, Santa Clara, Reno, Sacramento, New Haven, Palo Alto, Portland, Washington, Irvine, Nashville, and Sunnyvale. Home buyers and sellers are searching online in Salt Lake City, Riverside, Rancho Cucamonga, Oakland, Arlington, El Paso, Costa Mesa, Raleigh, Jacksonville, St Petes and Colorado Springs. Wherever you’re located, I’ve got the packaged services to generate leads in Albuquerque, Tacoma, Glendale, Oceanside, Long Beach, Huntington Beach, Carlsbad, Santa Clarita, Henderson, Las Vegas, and New Orleans.

Los Angeles Housing Market Forecast