The prices of houses in southern California fell in October for the third consecutive month, but the values remain close to summits of all time and unaffordable for most households.
The average price of houses in the six counties region was $ 864,586 last month, down 0.4% compared to September and 1% lower than the file reached in July, according to Zillow data.
Although prices have now dropped for three consecutive months, this does not mean that they will continue to do so. It is not uncommon for the prices of houses to fluctuate from one month to another, or diving from the end of summer and fall due to seasonal models. The prices of houses are still almost 4.5% greater than a year earlier in October 2023.
That said, the price growth rate of houses slows down, which many economists should occur given the inadequacy between income and prices.
The growth in house prices culminated at almost 9.5% in April and has decreased each month since.
Helping to moderate price growth is a shortage of housing which, without disappearing, becomes a little less serious.
In recent months, the number of houses registered for sale has continued to increase. Real estate agents say that owners who have once back to abandon their ultra-terrain mortgage rates from the pandemic and previously chosen more and more to move, deciding on a larger house is greater than low loan costs.
In October, the number of houses on the market increased in the six counties in the previous year, ranging from a 25% gain in the County of San Bernardino to 49% in the County of San Diego. In the County of Los Angeles, the inventory climbed 33%.
Zillow Research, time analysis
(Los Angeles Times)
Another factor of mortgage interests that hammers affordability. Borrowing costs have dropped during the summer, but have been increasing since October. As of November 14, the rate of the 30 -year -old fixed mortgage was on average 6.78% on November 7, compared to 6.08% at the end of September, according to Freddie Mac. Experts have attributed the increase to an economy that has been stronger than expected, as well as the policies that former President Trump can establish when he took office.
Trump has proposed radical prices and significant tax reductions, which experts probably say stimulating inflation and the country's deficit – two things that generally increase up on mortgage rates.
Note to readers
Welcome to the Los Angeles Times Immobilier Tracker. Each month, we will publish a relationship with data on housing prices, mortgage rates and rental prices. Our journalists will explain what the new data means for Los Angeles and the surrounding area and will help you understand what you can expect to pay for an apartment or a house. You can read the ventilation of real estate from last month here.
Some experts have said that they do not expect the prices for houses to decrease in the near future unless there is a recession. Indeed, while the inventory improves, it is always low historically. The prices, however, should climb more slowly, or remain relatively flat, which gives income a chance to catch up.
However, Richard Green, director of the USC Lusk Center for Real Estate, warned that it is difficult to say what comes next, because we do not know which of Trump's proposed policies will become a reality.
Explore the prices and rents of houses for October
Use the tables below to search for home sales prices and apartment rental prices by city, neighborhood and county.
Rental price in southern California
In the past year, requesting rents for apartments in many southern California regions has checked.
Experts say that the trend is driven by an increasing number of vacant posts, who have forced some owners to accept less rent. Vacant posts have increased because the supply of apartments is developing and demand has dropped while consumers are concerned about the economy and inflation.
In addition, the great generation of the millennium is more and more age in ownership access, While the small generation Z enters the apartments market.
However, potential tenants should not be too excited. To rent out is still extremely high.
In October, the median rent for vacant units of all sizes in the County of Los Angeles was $ 2,069, down 1.7% compared to the previous year but 7.5% more than in October 2019, according to data from the apartments list.
