The southern housing market of retrograde California.
The average price of houses in the six counties region fell from 0.3% of October to $ 869,288 in November, according to Zillow, marking the fourth consecutive month of declines.
“There is really no emergency buyers,” said Mark Schlosser, a compass agent in the Los Angeles region. “They wait.”
Prices are now 1.3% reduction on their level of all time in July, but some economists say that potential buyers and sellers should not expect the value of the houses to plunge – one of the reasons behind the change is that the market generally slows down in the fall and the prices are always higher than they were a year ago.
However, more houses reach the market and mortgage interest rates remain high, creating a situation of a little more supply and slightly less demand.
As a result, annual prices growth has slowed down. Last month, the prices of houses in southern California were 4.3% higher than a year earlier, against a recent 9.5% peak in April.
Orphe Divounguy, a senior economist of Zillow, said that he expects the annual prices growth in southern California to slow down next year, but not to become negative.
Although more owners choose to sell their house, many others still do not want to abandon their ultra-basic mortgage rates they have withdrawn during the pandemic.
Divounguy said that there was also the long -standing problem of California to build too few houses for all the people who want to live here. In some places that build more, prices are already falling compared to last year.
In the metropolitan region of Austin, prices fell 3.4% in November, according to Zillow.
“Until we saw the stocks catching up, as we have done in some of these large metros that have built a ton of housing, I don't think we will see negative prices,” he said.
Locally, Zillow plans the prices of houses in November 2025 to 1.5% higher than they are today in the counties of Orange and Los Angeles. In the inner empire, the values should climb 2.7%
Although prices can continue to increase, if revenues are also climbing and mortgage rates drop, the housing market could become more affordable for people looking to penetrate.
Depending on the time we look at, it already happens to some extent.
Inflation and economic growth play a major role in the direction of mortgage rates. In May, mortgage rates were greater than 7%, but then decreased to 6.08% in September, in the midst of signs that inflation was softening and the economy was weakening.
The rates have started to climb up, following the growth and fear of employment stronger than investors, an incoming administration of Trump would institute policies such as prices and tax cuts that would revive inflation.
At the end of November, mortgage rates reached 6.84%, but decreased somewhat since then, with 6.6% on December 12, according to Freddie Mac.
In a press release announcing the latest figures for mortgage rates, Freddie Mac's chief economist, Sam Khater, noted that “if the housing market is improving, improvement is limited since buyers of houses continue to deal with the contrary winds.”
Zillow Research, time analysis
(Los Angeles Times)
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.
Explore the prices and rents of houses for November
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 November, the median rent for vacant units of all sizes in the County of Los Angeles was $ 2,057, down 1.2% compared to the previous year but 7.2% more than in November 2019, according to data from the apartments list.
