Los Angeles market home prices declined 3.1 percent in May, according to a recently released home price index from CoreLogic, an Irvine-based property information company.
The May decline is the latest drop for the L.A. metro area CoreLogic follows, which includes cities of Los Angeles, Long Beach and Glendale. The area’s home prices showed a dip of almost 1 percent compared to the previous month of April, when there was a 2.78 percent decline. Declines in home prices reflected a drop in buyer demand due to higher interest rates, said Selma Hepp, CoreLogic’s chief economist.
The median sales price for Los Angeles’ Metro area was a little over $1 million in May 2023. A year previous, In May 2022, the median price for a sold home was $1.06 million, according to CoreLogic.
But the research firm forecasts L.A. home prices will increase 5.6 percent by May 2024. The pressures most keenly felt in Los Angeles will spur a rally, Hepp said.
“While demand has bounced back some during this spring, the inventories remain at historical lows which is putting pressure on prices again and which are likely to see further increases throughout this year,” Hepp said in emailed comments to The Real Deal.
The Los Angeles metro area follows a national trend. In May, U.S. home prices dipped 1.4 percent, according to CoreLogic.
As for the predicted market turnaround, other research groups have reported that it has already started. Redin announced that the median U.S. home-sale price rose 1.5 percent during the four weeks ending July 9 in a year-over-year comparison. Redfin said it was the first increase for home prices in nearly five months.
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