Are you looking at the housing market forecast in Los Angeles to determine whether it’s a good time to enter the real estate industry? Here are the statistics and insights you need to know.
Key Takeaways
- The median home price in Los Angeles has reached an all-time high, making it a lucrative market for real estate agents.
- Consistent job growth, especially in the tech and entertainment sectors, attracts new residents and potential homebuyers to Los Angeles.
- The rise in new home listings and unsold inventory in 2024 offers more opportunities for real estate agents to connect buyers with properties.
- Allied Schools provides comprehensive pre-licensing courses and continuing education, helping aspiring agents capitalize on the current market conditions.
Overview of 2023 Market Performance in California
At the end of 2023, the California market sales numbers had dropped for 30 consecutive months, with inventory constraints being the biggest challenge to the market. However, when you look at the December sales numbers, almost half of the homes sold were in the Southern California region. The median sales price in California at the end of last year was $819,740, a 6.4% YOY increase caused (partly) by low inventory.
Major Developments and Trends in California Real Estate Observed in 2024 So Far
According to the latest data, California’s existing home sales are down 6.0% year over year, but almost half of the sales came from the Southern California region. Most cite mortgage rates as the cause of this statewide downward trend. The median sale price is at an all-time high of $908,040.
National Housing Market Trends Overview
Let’s compare the data from California with the national housing trends. The latest U.S. housing trends reveal a mixed market. As of June 2024, existing home sales decreased by 5.4% year-over-year, with sales in all major regions except the West declining. The median home price reached an all-time high of $426,900. Inventory levels remain tight, contributing to the high prices, though there is an increase in new home listings, which may help balance the market.
Local Los Angeles Economic Indicators
Real estate agents must understand an area’s economic indicators and how they relate to the local housing market.
Staying ahead of market trends and developing local expertise can set you apart as a real estate agent. Clients rely on our expertise as agents to help them make informed decisions, so it is imperative we are continuously educating ourselves about neighborhood developments, school districts, and local amenities.
– Logan Winn MBA, Realtor® at Exit Realty Consultants
Here’s what you need to know about the L.A. economy.
Employment: Los Angeles has consistently experienced job growth, making it an attractive destination for job seekers. It’s an entertainment hub, but the tech sector has seen substantial growth in Silicon Beach, located on the west side of Los Angeles. Prominent educational institutions and the healthcare sector also enhance job opportunities in the region.
As of mid-2024, Los Angeles has experienced moderate employment growth, with total nonfarm employment increasing by 1.3% year-over-year, reaching approximately 4.6 million jobs.
Population: Population trends in Los Angeles have shown a slight decline, with the city’s population estimated at around 3.8 million, a decrease from previous years. This population change can influence housing demand and availability.
GDP: Los Angeles boasts a robust and diverse economy with a Gross Domestic Product (GDP) of approximately $1.23 trillion as of 2022.
Home Prices in L.A. Neighborhoods
Are you considering a career in real estate? We have provided extensive data on the Los Angeles real estate market forecast for you to consider as you make your decision.
As you contemplate enrolling in online real estate classes, take a moment to look at these compelling statistics about LA’s top 10 neighborhoods.
| Neighborhood | Average Home Value |
| Mid City, CA | $1,073,674 |
| Ocean Park, CA | $1,379,597 |
| Sunset Park, CA | $2,137,476 |
| Santa Monica, CA | $1,721,660 |
| Hermosa Beach, CA | $2,234,437 |
| Redondo Beach, CA | $1,453,987 |
| Manhattan Beach, CA | $3,019,672 |
| Irvine, CA | $1,540,620 |
| South Pasadena, CA | $879,709 |
| Woodbridge, CA | $586,815 |
Zillow Home Values, July 2024
According to FastExperts, California’s average real estate commission is 5.14% of the sale price. This means that the average home in Manhattan Beach, CA, could yield a considerable commission for real estate professionals.
Related: Average California Real Estate Salary
Is It a Good Time to Become a Real Estate Agent in Las Angeles?
Yes! It’s an excellent time to become a real estate agent in L.A. Here’s why.
- With median home prices in Los Angeles reaching an all-time high, real estate agents can earn substantial commissions from each sale.
- Los Angeles continues to experience consistent job growth, particularly in the tech and entertainment sectors, attracting potential homebuyers to the area.
- The rise in new home listings and unsold inventory provides more opportunities for agents to help buyers find properties, enhancing their business potential.
Get started on your California pre-licensing coursework today with Allied Schools. Allied Real Estate School has been helping people become California real estate agents for over 30 years. Offering both livestream and at-your-own-pace online real estate classes, Allied Schools also offers continuing education and broker courses. Questions? Contact us today to learn more about how to become a real estate agent in L.A.
