Towards the beginning of 2020, there was little hope for the short-term future of the Los Angeles real estate market given the rapidly increasing movement restrictions set in place due to the COVID-19 pandemic. Although the market took a slight pause amidst the original hustle and bustle, the 2021 Los Angeles real estate market has been on a record-breaking war path to exceeding the accessed value of previous years by a long shot. This can easily be seen by conducting a quick comparison between 2020 and 2021 statistics to date.
According to the California Association of Realtors, the Los Angeles housing market recovery may soon surpass the rest of the nation. They found that the number of sales made for single-family homes increased by 5.6% since August of 2020. This means that 438,190 more transactions were made in September of 2021. This was not the only portion of the housing market that saw a significant increase. CAR also found that the median home price for single-family houses in Los Angeles is $808,890 which is about 13.5% higher than it was in September of 2020. Clearly, the original assumptions about the potential for a market dip in 2021 were quite incorrect as the Los Angles housing market is extremely desirable and will continue to increase as shown by the undeniable offset of never-ending demand.
The finalized Assessment Roll for the 2020-2021 year displayed a 3.7% growth in the Los Angeles housing market as explained by Forbes. This Assessment Roll represents all the properties that exist in the Los Angeles area and are able to be taxed. Jeffrey Prang, the Los Angeles County Assessor, was able to determine that the value of taxable properties in Los Angeles is $1.76 trillion. All the values meticulously calculated in the 2020-2021 Assessment Roll are completely aligned with the value of Los Angeles properties since January 1st, the lien date. Although this 3.7% growth is a record-breaking increase for this year, Los Angeles County is no stranger to these kinds of market increases. Given this marks the 11th straight year where the Assessment Roll has grown in this area, prospective buyers can only assume that the 2021-2022 roll is going to top the charts once again.
Although there was a significant boost in buying power by Los Angeles homeowners in 2021, the supply of homes is going to take a slight downturn in the year 2022. This is simply due to the fact that Los Angeles County is an extremely desirable place to live so everyone wants their piece of the pie. Throughout the entire nation there are supply restraints not only for the real estate industry, but also for more common occurrences such as auto part maintenance. That being said, CAR’s “2022 California Housing Market Forecast” projects there is going to be about a 5.2% decrease in the number of single-family homes available to new prospective buyer. This percentage brings the total number of houses slightly down to 416,800 units.
As this affluent area continues to gain popularity, the market value for the homes located there are going to also increase to a median price of about $834,000. This number is up 20.3% from the median price being seen in the current 2021 Los Angeles housing market. Fortunately, the slower pace that’s going to be supported in Los Angeles will be a breath of fresh air for potential buyers who weren’t quite able to find the home or property they were looking for during their 2021 search. There is going to be less market competition out their investors and buyers have a much better chance at finding their perfect forever home. If anyone is looking to purchase property or a home in this area, now is the time to jump on the current market opportunities because the competition will only increase in the year 2022.
As proven by all the stated facts, the overall housing market value in Los Angeles is going to continue increasing for many years to come. There are numerous attracting factors that many prospective buyers simply can’t turn down. When a family is considering where they want to purchase their next home, it’s truly difficult not to consider Los Angeles County as their first option. The more people continue to purchase real estate in Los Angeles, the more valuable the overall area is going to become. Both school systems and the local government in general are benefiting from the increasing number of people deciding that Los Angeles is the perfect place to investment and to purchase their forever home.