Did you know that Los Angeles County was one of the harder-hit regions in the 2008 global recession? According to the First Tuesday real estate site, it took the County over 6 years to recover the number of jobs it had before the economic downturn. The one thing we can say about the LA residential real estate market is: it’s never standing still.
Los Angeles Housing Market Doesn’t Fit The National Mold
In 2020, home sales across the U.S. boomed because mortgage interest rates had reached historic lows. However, in Los Angeles, sales declined from the previous year.
The main cause? job losses resulting from the 2020 global pandemic. The pandemic also led to many sellers stepping back, choosing to wait for the pandemic to be over.
Today’s Home Sales Volume is Half Its Peak in 2003
How far back? Today, the 6-month rolling average for LA home sales is about 60,000 per year. The peak year for LA-area home sales was back in 2003, when over 125,000 homes sold.
About 5% of Homes Are On Sale At Any One Time: More Sales Are Predicted by 2025 or 2026
According to First Tuesday real estate education website, the recent California eviction and foreclosure moratoriums artificially impacted turnover for both homeowners and renters who were looking to move into homeownership. However, homeowner turnover rates tend to hover in the 5% range. That means that at any one time, about 5% of LA-area homeowners are looking to sell their homes. First Tuesday predicts that a more stable financial recovery will begin by 2025 or 2026.
Thousands of Baby Boomers Will Impact the LA Real Estate Market
The youngest Baby Boomers are expected to retire in 7 to 10 years, between 2030 and 2033. Los Angeles ranks #15 on the list of large cities with big population of Baby Boomer homeowners. While only 18.3% of LA’s population are Baby Boomers, they own over 40% of the city and county’s homes. There are over 208,000 Baby Boomer-led households in the county. As this group chooses different housing, they are certain to affect the home buying and selling market.
California Platinum Loans/California Platinum Realty have years of experience in the Los Angeles home buying and selling market. You can rely on their expertise and commitment as you find your own best financial and residential place in the ever-changing Los Angeles community.
Sources:
ft Editorial Staff. “Los Angeles Housing Indicators,” First Tuesday Journal (ft), 13 February 2023, url: https://journal.firsttuesday.us/los-angeles-housing-indicators-2/29229/
Gale, William G. “The Aging of America: Will the Baby Boom Be Ready For Retirement?” Brookings Institution, 1 June 1997, url: https://www.brookings.edu/articles/the-aging-of-america-will-the-baby-boom-be-ready-for-retirement/
Jones, Jonathan. “Baby Boomer-Dominant Housing Markets,” Construction Coverage, 7 March 2023, url: https://constructioncoverage.com/research/baby-boomer-dominant-housing-markets-2020
