The number of new home listings in Los Angeles County declined significantly in December, indicating a decline in sales contracts. Homeowners are reluctant to put up new listings as the housing market has entered a sluggish phase due to concerns about an economic downturn, and even sales have declined as demand for housing has plummeted due to continued high interest rates.<\/p>\n
However, as LA City plans to impose additional transfer tax on high-priced real estate over $5 million, there is a possibility that the number of homes for sale may increase. is expected to be difficult to anticipate.<\/p>\n
According to real estate brokerage Douglas Elliman on the 10th, the number of newly registered homes for sale in Los Angeles County in December last year was 1,151, a 36% drop from the previous month, 1,794 in November. In Los Angeles County, where the number of new home listings is on the decline, a significant drop of 36% is considered an anomaly.<\/p>\n
As the number of new home sales decreased, the number of home sales contracts also decreased. Last month, 1,541 home sales were signed in Los Angeles County, down 6.2% from 1,541 in November.<\/p>\n
The slump in home sales is not just a local phenomenon in LA County, it is a national phenomenon. According to Redfin, a real estate information provider, sales of pending homes for sale nationwide in December fell 32% from a year ago.<\/p>\n
Home sales and new listings are declining in the Los Angeles County housing market because mortgage rates continue to rise due to high interest rates. Based on 30-year fixed mortgages, the average interest rate is currently in the mid-6% range, but it is twice as high as last year’s 3% range. High mortgage interest rates have led home buyers to wait and see, and as demand for purchases has plummeted, homeowners are also reluctant to put their homes on the market.<\/p>\n
In addition, Douglas Elliman’s analysis is that the LA County housing market has become more frozen as December is traditionally a seasonal factor when housing transactions decrease, and the myth that the real estate market is in a downturn in an election year.<\/p>\n
The only consolation thing is that the number of new listings in the Los Angeles County housing market is up compared to a year ago<\/p>\n
Douglas Elliman predicts that there will likely be an increase in home sales in Los Angeles County in the future. Ahead of the implementation of the ULA initiative, which would impose an additional transfer tax on the sale of real estate over $5 million in the Los Angeles area starting April, there will be an increase in the number of homes for sale, especially high-priced homes, to dispose of before the law goes into effect to avoid an additional transfer tax bomb. It is because it is.<\/p>\n
The problem is the Federal Reserve’s interest rate hike. It is not a question of the size of the base rate hike, but additional hikes are accepted as a fait accompli. As the possibility of a rebound in mortgage rates remains the same depending on the rate of interest rate hikes, the pace of recession in the LA home and real estate market may accelerate.<\/p>\n","protected":false},"excerpt":{"rendered":"