L.A. Home Prices Fall 7%

Los Angeles

Home prices in Los Angeles fell 7% in the fourth quarter of last year—but don’t expect median home prices to start to fall this year. Research from HSH.com shows that the median home price in Los Angeles fell 7.02% quarter-over-quarter, but Keith Gumbinger, VP at HSH.com, says that it is normal to see quarterly pricing fluctuations. This year, however, he expects home prices to continue to rise is Los Angeles. Today, the median national home price is $553,300 in Los Angeles, while the national median-priced home is priced at $247,800. To purchase a home in Los Angeles, you need an income of $92,400 if you are putting 20% down. If you put 10% down, the required income shoots up to $127,869. We sat down with Gumbinger to talk about these stats and how they are impacting the market.

GlobeSt.com: Home prices fell in the fourth quarter. What drive Los Angeles home prices down in the fourth quarter 2017? Keith Gumbinger: Quarter-to-quarter variances in prices aren’t uncommon, and likely reflect the mix of homes sold during the period more so than anything else. For example, the so-called “spring” home buying season is likely to include more single-family detached homes as families look to get settled before the next school year; these homes are probably more expensive overall than would be townhomes or condos. To the extent that this seasonality exists, it can be better to consider year-over-year changes, and in this way, prices from a comparable period a year ago are up sharply.