A Slight Seller's Market - Los Angeles County

Los Angeles County Housing Summary

• The active listing inventory in the past couple of weeks dropped by 382 homes, down 3%, and now totals 10,730 homes, establishing a peak for 2022 two weeks prior. In August, there were 20% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 1,651 less. Last year, there were 8,300 homes on the market, 2,430 fewer homes, or 23% less. The 3-year average prior to COVID (2017 to 2019) was 13,084, or 22% more.
• Demand, the number of pending sales over the prior month, increased by 49 pending sales in the past two weeks, up 1%, and now totals 4,327. It is still the lowest start to September since tracking began a decade ago. Last year, there were 6,248 pending sales, 44% more than today. The 3-year average prior to COVID (2017 to 2019) was 5,363, or 24% more.
• With supply dropping and demand slightly rising, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, decreased from 78 to 74 days in the past couple of weeks, a Slight Seller’s Market (between 60 and 90 days). It was at 40 days last year, much stronger than today.
• For homes priced below $750,000, the market is a Hot Seller’s Market (less than 60 days) with an Expected Market Time of 60 days. This range represents 33% of the active inventory and 41% of demand.
• For homes priced between $750,000 and $1 million, the Expected Market Time is 68 days, a Slight Seller’s Market. This range represents 24% of the active inventory and 26% of demand.
• For homes priced between $1 million to $1.5 million, the Expected Market Time is 73 days, a Slight Seller’s Market. This range represents 17% of the active inventory and 17% of demand.
• For homes priced between $1.5 million to $2 million, the Expected Market Time is 87 days, a Slight Seller’s Market. This range represents 8% of the active inventory and 7% of demand.
• For homes priced between $2 million and $3 million, the Expected Market Time in the past couple of weeks decreased from 113 to 94 days. For homes priced between $3 million and $4 million, the Expected Market Time increased from 126 to 159 days. For homes priced between $4 million and $8 million, the Expected Market Time decreased from 240 to 184 days. For homes priced above $8 million, the Expected Market Time decreased from 731 to 292 days.
• The luxury end, all homes above $2 million, accounts for 18% of the inventory and 10.5% of demand.
• Distressed homes, both short sales and foreclosures combined, made up only 0.4% of all listings and 0.3% of demand. There are only 35 foreclosures and 11 short sales available to purchase today in all of Los Angeles County, 46 total distressed homes on the active market, up 7 from two weeks ago. Last year there were 32 total distressed homes on the market, similar to today.
• There were 4,604 closed residential resales in July, 32% less than July 2021’s 6,793 closed sales. July marked a 18% decrease from June 2022. The sales to list price ratio was 101.2% for all of Los Angeles County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.1%. That means that 99.7% of all sales were good ol’ fashioned sellers with equity.