By Jeffery Marino
An imbalance of supply and demand continued to push up house prices in Northeast Los Angeles in November, the latest month with comprehensive sales data.
The inventory of homes for sale in NELA was down 45% in November compared to a year ago, the steepest inventory decline in NELA since April of 2013. The median sale price rose in November to $1.07 million, a 19% year-over-year increase and the 10th straight month of double-digit annual price increases.
At the same time, rising inflation in the face of still-low interest rates has made buying a house a seemingly better-than-ever investment, as real estate is generally viewed as a good hedge against inflation. The Federal Reserve has indicated it will start to raise interest rates in 2022, but that’s unlikely to happen until March at the very earliest. Moreover, the increases, when they come, are expected to be small and gradual.
The upshot is continued fierce competition among NELA home buyers for a dwindling supply of houses for sale. The median days on market in November was only 36, with many homes snapped up within a week of being listed for sale. The average sale-to-list ratio in November was 108%, which means the average home sold for 8% over the asking price – or a hefty $80,000 on a home listed for sale at $1 million.
It’s a New Year, but so far it’s looking like the market for residential real estate in NELA will be a replay of 2021, with more buyers than sellers, a frenzied pace and higher prices.
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