Year-over-year home sales average price. Month-to-month median listing price average. Median listing price per square foot. Los Angeles’ real estate market is one of the most complex in the U.S. and it’s full of statistics.
Each one of these statistics tells a different story, but some are more important than others. Our staff at California Platinum Loans and California Platinum Realty have seen the market change and grow over time. We thought that now would be a good time to create an overview of real estate stats and what they mean.
Median Vs. Average Price Figures
Median refers to a number that’s midway between the highest and lowest halves of a set of numbers. Median isn’t the same as average. How does that work?
Let’s look at five different homes offered for sale at these prices: $160,000, 180,000, $200,000, $250,000, and $1 million.
If we’re calculating the median price, one price is in the middle, dividing the two lower prices from the two higher ones. The median sales price of this group of homes is $200,000.
If we wanted to calculate the average sales price among this group, we would add all five prices together, then divide by the number in the series: 5. The average sales price among the group is $358,000.
Houses Selling For Above Listing Price
We can often see articles about homes selling for several thousand dollars above their listing price. But Realtor.com statistics show that this isn’t the case for every home that sells in the L.A. area. If it were, the median listing price would be lower than the median sold home price and it isn’t.
In June 2023, Realtor.com reported that the median sold price for approximately 7,000 homes in Los Angeles was $925,600. That means there were about 3,500 homes in the area that sold for less than $925,600 in the past year, and about 3,500 homes that sold for more. At the same time, the median listing price was $1.2 million.
Looking At The Rental Market
As of June 2023, the median rent in Los Angeles was $2,900 according to Zillow Rental Manager. With about 12,000 homes for rent throughout the area, that means that half of these homes rented for less than $2,900, and half for more. Last year at this time, the median rent in L.A. was $200 higher: $3,100. While Zillow lists very few listings at the lower end of the scale, there are over 2,200 rentals for $5,000 and above in the Los Angeles market.
There are a lot of opportunities in the L.A. real estate market. Talk to us at California Platinum Loans to discover the opportunities that are right for you.
Realtor.com “Los Angeles Real Estate Overview,” 24 June 2023, url: https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview
Zillow Rental Manager. “Los Angeles, CA Rental Market.” 24 June 2023, url: https://www.zillow.com/rental-manager/market-trends/los-angeles-ca/