This Highland Park 2 bed/1 bath home on Fallston St recently sold for $921,000. Source: MLS

Home Sellers Have Pulled Back. Will Prices Also Retreat?

2020 Front Page May More News Real Estate

By Jeffery Marino

There is no doubt that the coronavirus shutdown has slowed activity in the market for residential real estate. In March, the latest monthly data available, inventory in Northeast Los Angeles fell by 46% compared with a year earlier, while new listings fell by 21% year-over-year. The decreases indicate reluctance on the part of potential sellers to have their homes on the market at this challenging time.

The question now is whether prices will also fall. Here’s what we know:

At first glance, the March price data look solid, showing a 4.5% increase in home prices compared with a year earlier. However, most of the sales in March were of listings from February that cleared escrow and closed before the shutdown began in mid-March. For a clearer picture of how the shutdown has impacted home prices, we need to see the April data, available in mid-May.

Some things to look for: Since listings were down so dramatically in March, it’s all but inevitable that fewer homes were sold in April 2020 than in April 2019. Less inventory suggests higher prices for homes if there are plenty of potential buyers. But that’s a big “if” amid widespread unemployment.

The days and weeks ahead will be a time of watchful waiting. The one sure thing is that the economy, including residential real estate, is under tremendous strain.

Related content: Click here to see the Boulevard Sentinel’s monthly listing of home sales in Northeast Los Angeles.

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Jeffery is a seasoned data journalist and has covered the California real estate market for over a decade.

Jeffery Marino
Jeffery is a seasoned data journalist and has covered the California real estate market for over a decade.

5 thoughts on “Home Sellers Have Pulled Back. Will Prices Also Retreat?

  1. Yeah! you are well said. I agree with you. This article is very effective. Everyone will benefit after reading this article.

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  3. I appreciate you talking about how the virus has slowed down the selling of homes this year. My brother is trying hard to sell his house this autumn and he needs some help. I think he needs to find a good agent in the area that will be able to offer advice and help with paperwork.

  4. It is understandable that COVID-19 has disturbed every industry in many ways. But I think at the time while the virus was spreading unexpectedly there was an option of promoting your business through social media. I have also tried this option in the pandemic and It was just amazing.

  5. It’s amazing how the real estate market can make its own path without regard to things like a global pandemic. Sales were still very strong last year right after the pandemic hit and this February/March sales were still very strong. Great post!

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