Los Angeles February 2022 Market Update

Hi, everyone! Hope you're having a fantastic March 1st. Ana Mendoza here. Super excited to be here to give you your market update for your year-over-year for the month of February, now that it's gone. We are excited for spring that is just around the corner. A lot of things are happening. We just announced today that we added a team member to the Mendoza group, Dana Rosen. We are excited to have her as part of our team. And I'm sure that you guys are going to enjoy working with her as well, and getting to know her a little bit more. So here is your year-over-year market update for the month of February for homes that have sold in the city of Los Angeles under a million dollars.

Pay attention to what's going on in the market. I'm sure a lot of you are noticing that we are going into a shift. I have been saying that in my videos, and if you watch back to them. We are still in a seller's market, but it is adjusting, and so there is still less inventory compared to last year. Last year 328 new homes came on the market, this year 259. So 69 less homes came on the market this February 2022. Now, the average days on market, or basically from when a home goes into escrow and then closes with escrow, is still around 29 or 30 days. 30 days for last year, 29 days for this year. Unless you are partnering with a fantastic mortgage broker, lender, direct lender that can get your sale closed within a shorter amount of time, that is the average timeframe.

The average sale price did increase a little bit, by $8,000. So last year was $662,000, this year was $670,000. What does that mean? That means that we are, yes, hitting spring, but the market is adjusting. Interest rates are rising, they're already, like yesterday were 4.2. Now, interest rates are based on your overall financials, so what your credit scores are, what your debt to income ratio is, or what product you want to go with. All their interest rates are different, based on the length of what product you want to go with. But the average interest rate basically was in the low fours, so it is increasing.

What's happening with that, the interest rates affect the buying power and also the average sales price. So for example, last year the homes were selling for $662,000, this year $670,000, so only $8,000 more. What happens is that if you happen to come upon a greedy seller that thinks that they're going to get $100,000, the averages are saying basically they're only going to pay $8,000 to $10,000, compared to $100,000. So there is a shift, where buyers are getting more smart and sellers need to be smarter when pricing their home to sell.

So that is your year-over-year market update for the city of Los Angeles for the month of February. And I hope that information was of value. Please reach out to us if you would like more tailored information based on your neighborhood or your specific home. We're happy to provide that information to you. I also wanted to take a moment to just say that we are praying for Ukraine. We acknowledge what's happening in Russia. And as a parent, it is very heartbreaking to just see the images that are online, every time that I check my email. So we are praying for you and sending you love and light, and we are thinking about you guys. Hope that information was of value. Have a fantastic March. We are excited for what's happening, and looking forward to a fantastic month. We'll chat soon. Bye.