Over the past few years there has been an ongoing conversation about the underlying cause of rising housing costs throughout Los Angeles. Because of the steadily rising costs for homes, Los Angeles is seeing the lowest number of homeowners in the cities history. With this drop, rental costs are soaring. Many real estate professionals are looking at hyper inflated costs of high-end homes as part of the cause. From July of 2015 to July of this year, the cost of houses has spiked more than 8 percent. This is significantly higher than the national average. While this may seem like excellent news for those selling homes, it is problematic data. While the average listing price and selling costs of homes are rising, the number of home sales is declining, making it harder to buy and sell in the current market.

Between the summers of 2015 and 2016 the amount of houses on the market rose by 55 percent. Seeing an increase from year to year is to be expected, but not at such a dramatic rate of climb. The other change that was seen in that same year was the drop in the amount of homes selling. Pending home sales plummeted 35 percent in just one year. What this all means is that houses are being listed, they just aren’t selling. These numbers tell a tale of problems for homebuyers and sellers as well as real estate professionals and the myriad of professions effected by the housing market.

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The question looms whether the prices will stabilize and eventually drop or will this trend continue into coming years. While no one can truly predict the real estate market, some experts are predicting that a more positive Los Angeles housing market may be on the horizon. Some theorize that the market will stabilize in coming months as houses are priced more realistically. This will allow for a greater audience to buy into the hot LA housing market.

If you are a home buyer or seller in the unpredictable LA housing market what should you do? The best way to weave through the process of buying and selling is to work with a trusted real estate brokerage that can help you list your home or find the home of your dreams at the right cost. This relationship between homebuyer and real estate professional is critically important, especially for younger, less experienced home buyers. They can help you avoid the pitfalls of an unpredictable market and help you protect your investment.

If you are interested in entering the Los Angeles housing market and want to learn more about the many luxury real estate options in Los Angeles, reach out to our luxury real estate team. We specialize in the cities most exclusive properties throughout Southern California.


  1. 3 beds, 4 baths
    Home size: 2,024 sq ft
    Lot size: 8,956 sqft
  2. 5 beds, 5 baths
    Home size: 4,989 sq ft
    Lot size: 6,549 sqft
  3. 3 beds, 3 baths
    Home size: 2,588 sq ft
    Lot size: 6,197 sqft
  4. 5 beds, 5 baths
    Home size: 4,617 sq ft
    Lot size: 7,250 sqft
  5. 4 beds, 5 baths
    Home size: 4,400 sq ft
    Lot size: 7,008 sqft

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(all data current as of 10/17/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.