LA Home Market Stalls as Signed Contracts and Listings Drop

New listings and signed contracts for single-family homes took a dive in Los Angeles County in July.

There were 2,093 contracts signed in July, a 14 percent decline from June when 2,392 new contracts were signed. There was a 20 percent decline in a year-over-year comparison with July 2022 when L.A. real estate was in the middle of a bonanza market, according to a recently released Douglas Elliman report.

New listings also declined in L.A. County. In July, there were 1,976 new listings, a 6 percent decline from 2,096 new listings in June. There was a 39 percent decline in a year-over-year comparison.

The decline in new listings and signed contracts is not entirely an L.A. story. Orange County and San Diego County had similar declines in signed contracts and listings, according to the report.

Report author Jonathan Miller said the most distressing metric is anemic inventory.

“In many ways, the market is stuck. There would be more buyers if they were confident that they could find something to buy. So they won’t list,” he said.

More people would list their homes if mortgage rates and interest rates drop, but declines in rates are not predicted anytime soon.

“The bottom line is to be patient,” Miller said. “It is not a matter of weeks or quarters. It will be the following year or longer before we see movement in rates.”

To navigate the gridlocked market, Jennifer Lind, Coldwell Banker’s Western Region president, advised focusing on basics of the real estate business. “We are stalled by macroeconomic events that are beyond our control,” she said. “Success in a market like this will be driven by deep-rooted relationships.”

Deals will come to agents who can help people with home-buying dictated by life events such as death, divorce and growth in the family, she added.