What are the Los Angeles real estate market predictions for 2021? Let us look at the price growth recorded by Zillow. Since 2011, the median home price in Los Angeles, on Zillow, has increased by 96% (from $392,000 to $768,046). Similar growth has been recorded by NeighborhoodScout.com as their data also shows that in the past ten years, Los Angeles real estate appreciated 94.09%. This amounts to an annual real estate appreciation of 6.86%.
This puts Los Angeles in the top 10% nationally for real estate appreciation. During the latest twelve months, Los Angeles’s appreciation rate, at 4.54%, has been at or slightly above the national average. In the latest quarter, Los Angeles’s appreciation rate has been 1.28%, which annualizes to a rate of 5.23%. This figure also corroborates with Zillow’s positive forecast, so the prices would increase by at least 5% in the next twelve months.
The median home value of single-family homes and condos in Los Angeles is currently holding at $768,046. The typical home value of homes in Los Angeles-Long Beach-Anaheim Metro is $711,361. (Zillow Home Value Index is seasonally adjusted and only includes the middle price tier of homes).
Here is the latest housing forecast for the Los Angeles County and the LA MSA until September of 2021.
Los Angeles home values have gone up 9% over the past year and the latest forecast is that they will increase by 8.3% in the next twelve months.
Los Angeles County home values have gone up 8.2% over the past year and Zillow predicts they will rise 8.1% in the next twelve months.
Los Angeles-Long Beach-Anaheim Metro home values have gone up 7% over the past year and Zillow predicts they will rise 7.7% in the next twelve months.
The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until September 2021.
The historical change in home prices for Los Angeles-Long Beach-Glendale, CA is shown below for the three-time period. The Los Angeles Home Price Index has increased for the last 25 consecutive quarters (data up to 3rd Quarter, 2018). The highest annual change in the value of houses in the Los Angeles Real Estate Market was 32% in the twelve months ended with the 3rd Quarter of 2004.
The worst annual change in home values in the Los Angeles Market was -23% in the twelve months ended with the 4th Quarter of 2008. The historical change in home values has been calculated until the 3rd Quarter of 2018. For the upcoming updates, you can visit LittleBigHomes.com.
Time Period Los Angeles MSA Real Estate Appreciation
Last 5 Years 48%
Last 10 Years 46%
Last 20 Years 229%
The question now is what happens moving forward. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has had a major impact on home sales. In spring, the stay-at-home orders had completely frozen the market.
Many sellers pulled their homes off the market after stay-at-home orders took effect. Los Angeles home sales dropped sharply in April from both the previous month and year as the housing market began to feel the full impact of the coronavirus outbreak and the state’s stay-at-home order.
In fact, for the entire state of California, April 2020 saw the worst month-to-month sales decline in more than four decades. The southern market is now showing signs of heating up after a coronavirus-induced slump but sales are still way below the levels of last year. Compared to last year, the home sales in September were up in all six counties, with San Diego recording the highest sales growth of 32.8%.
LA County also saw a jump of 16.4% YTY and 11.6% in month-over-month sales of existing single-family homes. The real estate industry has been adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. While the full economic recovery will resume gradually, the housing market is expected to remain balanced for the next couple of months until the threat of the pandemic is over.