The median home price in Los Angeles County rose by about 7 percent to $530,000 between November 2015 and November 2016.
Its growth rate exceeded the 6 percent average for other metropolitan areas that have median sale prices over $500,000, data complied by Redfin shows. For example, San Jose has a median sales price of $875,000, but its 4.2 percent growth rate is significantly lower than that of L.A., according to Redfin.
“[The growth in] L.A. is really remarkable considering how expensive it is,” a Redfin specialist told The Real Deal.
Some neighborhoods within L.A. are growing faster than others, in terms of median per-square-foot home prices. Glassell Park took the cake with a 25.3 percent year-over-year increase, followed by West Adams and Mid-City, according to data pulled by Redfin.
Northeast L.A. neighborhoods have grown consistently in recent years. Glassell Park is at the top this year because many people have already been priced out of nearby Eagle Rock and Highland Park.
A handful of neighborhoods posted negative year-over-year changes in median price per square foot. The Beverly Hills Post Office area, for instance, saw a 12.5 percent decrease.
When looking at micro-neighborhoods, however, the changes can be refletive of one or two large sales, the Redfin analyst stressed.
In the county at large, there has been only minor fluctuation on a month-to-month basis. Between October and November, L.A.’s median home price dipped 1 percent. Between September and October, it was up 1 percent. In the greater Southern California region, home prices have not changed much month-over-month since June, which some economists see as a sign of a slowdown.
“Growth may very well slow down, but it certainly won’t stop,” Redfin researcher Taylor Marr said, citing high housing demand in La La Land. “It’s possible that [prices] will stabilize and grow at a slower pace, but there won’t be major changes to the stock or population changes to warrant large scale changes [in L.A.].”