Scott Goshorn Luxury Estates-  Rodeo Realty Beverly Hills Scott Goshorn Luxury Estates-  Rodeo Realty Beverly Hills Scott Goshorn Luxury Estates-  Rodeo Realty Beverly Hills Scott Goshorn Luxury Estates-  Rodeo Realty Beverly Hills
Platform
  • THE TEAM
  • For Sellers
  • For Buyers
Menu
Schedule a Call
  • THE TEAM
  • For Sellers
  • For Buyers

About Scott

  • Meet Scott
  • Client Love
  • Read My Blog

Looking to Buy?

  • Search Available Properties
  • The Buyer Experience
  • Neighborhoods
  • Mortgage Calculator

Looking to Sell?

  • Sold Properties
  • The Seller Experience
  • 21st Century Marketing
  • Free Home Valuation

Contact

202 North Canon Drive, Beverly Hills, CA 90210
323-251-5479 [email protected]
Do you want content like this delivered to your inbox?
Share

Let's Keep in Touch

Subscribe to get updated on the most recent information from Scott Goshorn Luxury Estates- Rodeo Realty Beverly Hills
Thank you!

We respect your inbox. We only send interesting and relevant emails.

 

Share
Back to Articles

2023 Los Angeles Real Estate Market Report

Scott Goshorn

Real estate runs deep in my blood.I grew up watching my mother hustle as a real estate agent in my home state of Ohio and her love of the business tra...

Real estate runs deep in my blood.I grew up watching my mother hustle as a real estate agent in my home state of Ohio and her love of the business tra...

Jan 5 7 minutes read

Recessions and Real Estate.

2022 in Real Estate was a wild ride! The year started off strong for sellers, pulling in multiple offers and record high sale prices. Then the end of the year was marked by record high interest rates creating more balanced market dynamics.

With the start of 2023, both buyers and sellers are entering a market with looming fears of a recession.

As of now, the National Bureau of Economic Research (NBER) has not officially announced a recession (though the official declaration comes after the economy has entered one). Every month, the NBER looks at data that includes unemployment, personal spending, GDP and more. And with employment rates and GDP being positive right now, one can assume that there is not an active recession.

But while we’re on the topic of a recession, you might be wondering how it impacts home buyers and sellers. So here we go:

For Buyers

  • A recession may lead to more affordable housing options
  • Home prices may fall
  • Mortgage rates tend to remain lower
  • But overall lending conditions may tighten in general

For Sellers

  • Equity utilization: One of the benefits of selling our home during a recession is that it allows you to utilize your equity. And you can use this equity to make a move to a new property with the advantages of a buyer outlined above.
  • A shortage of available homes for sale means that your home is unlikely to sit on the market for the extended lengths of time

What does the data tell us?

In the absence of a crystal ball, what we do have is data, which all goes back to supply and demand. Let's talk SUPPLY:  despite the year over year drop as you can see below, what's even more aggressive is the month over month drop. From November heading into December, new listings for Single Family Homes dropped 59% and condos dropped 62%. Conclusion: Supply is LOW and sellers may be hoping to ride this out due to the belief that there are fewer buyers in the market due to higher interest rates. Let's talk DEMAND:  Buyers are entering 2023 to find mortgage rates at their lowest point since September and responding in kind according to the Mortgage Bankers Association's seasonally adjusted index. Conclusion: More buyers may be entering the market as mortgage demand jumped nearly 28% in one week as interest rates dropped to the lowest point in months.   

One more data point is around the holy grail of LISTING and SALES PRICE. Compared to a year ago when the market was ON FIRE....listing prices and sales prices have only dropped 5-6% compared with 20% plus in other parts of the country. Additionally...these homes are selling close to the list price with a list/sales price ration of 99% for Single Family Homes.  As I always tell our clients: if their home is appropriately priced, it WILL SELL and the data seems to confirm this. 

Net/Net:

Unlike other markets, Los Angeles continues to be stable despite the looming fears of a recession. And even if a recession were to occur,  they aren’t fun but they are a normal part of the economic cycle and they don’t last forever. 

Just remember this: even if we do officially enter a recession, home buyers and sellers are still in much better shape than they were before the pandemic.  And one more thing to remember: Real Estate is a long game; especially in a market like Los Angeles where short-term hiccups in the market shouldn’t be a worry in the long run.


And now for the latest data on Los Angeles County real estate trends:

Single family homes  I Los Angeles County I December 2022

New Listings: 1,828 (Down 33.55% year over year)

Homes Sold: 2,414 (Down 47.34% year over year)

Median List Price: $875,000 (Down 1.57% year over year)

Median Sales Price: $860,000 (Down 5.49% year over year)

Median Days on Market: 25 (Up 92.34% year over year)

Average List Price: $1,340,134 (Down 2.83% year over year)

Average Sales Price: $1,302,571 (Down 6.3% year over year)

Average Days on Market: 39 (Up 50% year over year)

List/Sell Price Ratio: 99% (Down 4.13% year over year)


Condo homes  I Los Angeles County I December 2022

New Listings: 618 (Down 39.77% year over year)

Homes Sold: 831 (Down 50.71% year over year)

Median List Price: $619,000 (Down 4.62% year over year)

Median Sales Price: $601,000 (Down 7.54% year over year)

Median Days on Market: 28 (Up 86.67% year over year)

Average List Price:  $774,890 (Down 2.8% year over year)

Average Sales Price: $761,232  (Down 5.38% year over year)

Average Days on Market: 39 (Up 34.48% year over year)

List/Sell Price Ratio: 98.7 (Down 3% year over year)

Single Family Homes I December 2022  I Los Angeles County

Condo-Townhomes  I November 2022 I Los Angeles County

Single Family Homes I Months Supply of Inventory I Properties for sale divided by number of properties sold

Single Family Homes I New Properties I Number of new properties listed for sale during the month 

Single Family Homes I Average Sales/List Price I Average list price compared to average sold price of properties sold each month

Single Family Homes I Properties for Sale I Number of properties currently listed for sale by price range

Single Family Homes I Average Sales Price and Average Days on Market


The statistics presented in the Market Report are compiled based on figures and data generated by IDC Global and Datafloat for the benefit of Rodeo Realty. Due to possible reporting inconsistencies, Days on Market (DOM), average prices and rates of appreciation should be used to analyze trends only. All information should be independently reviewed and verified for accuracy. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Data maintained by the MLSs may not reflect all real estate activity in the market. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

Want to know what's happening in your neighborhood?

There's the state of California, the county of Los Angeles and then there's your neighborhood.  If you would like a Real Estate market report for a specific zip code or neighborhood, complete this form and we'll be back in touch with you!

We are just a call away.

Or

Best time to call?

ASAP
Today
Tomorrow

By clicking Submit, you agree to our Terms.
View Our TOS and Privacy Policy

Thank you for reaching out!

We'll get in touch with you soon.

Let's Keep in Touch

Subscribe to get updated on the most recent information from Scott Goshorn Luxury Estates- Rodeo Realty Beverly Hills
Thank you!

We respect your inbox. We only send interesting and relevant emails.

We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info

Recognized as a Founder's Circle Producer representing the top .05% of agents nationally. We work smart, hard, and deliver results. Period!

curaytor-horizontal
Scott Goshorn Luxury Estates- Rodeo Realty Beverly Hills
Client Love
Search for Homes
The Buyer Experience
Schedule a Call
The Seller Experience
21st Century Marketing
Get Your Home's Value
Read My Blog
Sold Properties
Mortgage Calculator
Join Our Email List:
Thank you!

We respect your inbox. We only send interesting and relevant emails.

© 2023 Scott Goshorn Luxury Estates | All Rights Reserved
Privacy Policy
Scott Goshorn Luxury Estates | CAL BRE# 01964409
202 North Canon Drive, Beverly Hills, CA 90210
Listing data feed last updated on February 1, 2023 at 9:44 pm UTC+0000