HOME PRICES STILL INCHING UP

Home prices are still inching up

In addition to contending with rising mortgage rates, homebuyers must also grapple with climbing home prices.  This is true for most parts of the country. Nationally, in March, homes were listed for a median price of $424,000. And for the week ending April 15, listing prices grew by 2.5% compared with a year earlier. In Los Angeles the median price is $921,990. 

 “Home prices are climbing as they typically do in the spring. However, momentum continues to dissipate,” Realtor.com Chief Economist Danielle Hale noted in her weekly analysis. In fact, this week’s growth is the slowest she’s seen since May 2020.

 “Home prices are likely to go up from month to month through the summer, as they usually do,” she predicts. “But the jumps will be smaller than we saw in 2022.”

 In other words, homebuyers will have to deal with slightly higher home prices, but nothing nearly as bad as the runaway sticker shock they experienced last summer. Nonetheless, when you combine these prices with today’s higher mortgage rates, the picture is still grim. For homebuyers who put 20% down on a typical house, their mortgage payments will now amount to $600 or more per month than last year.

 “Home prices have stabilized somewhat, but with supply tight and rates stuck above 6%, affordable housing continues to be a serious issue for many potential homebuyers,” Freddie Mac’s chief economist Sam Khater noted.  “Unless rates drop into the mid-5% range, demand will only modestly recover.”

We deeply appreciate the trust and partnership you have extended to us. As some of the best realtors in Los Feliz and Greater Los Angeles, the Riley Real Estate & Home Mortgage team is dedicated to assisting you in discovering your dream home in the beautiful neighborhood of Los Feliz and surrounding Los Angeles areas.  We eagerly anticipate the opportunity to serve you in buying, selling, investing and mortgages and earn our reputation as a top realtor and make your real estate aspirations a reality.

Best,

Riley Schmidt