Los Angeles January 2022 Market Update

Hi everyone! Anna Mendoza here. I'm super excited that January came and went, and birthday month this year. So thank you first of all, for those of you that reached out, sent me text messages and emails and said, "Happy birthday," it was a really nice day. And thank you to my husband because he made it extra special, and my kids, of course.

I'm here to give you your year-over-year market update for the city of Los Angeles, homes that have sold under a million dollars. So the year-over-year market analytics are from January, 2021 to January, 2022 since it came and went and now we're in February, the average listings, or basically how many listings are currently on the market or were on the market last year compared to this year.

Last year there were 312 new homes that came on the market under a million dollars in the city of Los Angeles. This year only 214. You're seeing a huge gap of 98 less homes. It's also because it's the beginning of the year, you do see a little bit more homes coming on the market, but as you get closer to the springtime, which basically is right around the corner, you're going to see a little bit more creep up.

The average days on market went from 31 days to 31 days. So it basically stayed the same. And the average days on market based on the MLS basically, it's from when the property hits the market and then it closes. So when you hit the market, goes into escrow, and then you close escrow, from January, 2021 to January, 2022, we're the same basically, 31 days. You are seeing on the rare occasion, the 17 and 20 days, but you are seeing more of the normal 30, 31 days escrow, 45 day escrows potentially for those of you that are doing piggy bank closings of moving out of state or whatever the case is.

The average sales price did increase a little bit from 667 to 683, so $16,000 more in your pocket. The reality is that we are still in a seller's market, but when you look at it, you kind of are in a buyer's market as well. If you notice there was a $16,000 increase from last year. If you purchase in 2021, you do have more equity this year, and then you probably purchased when the interest rates were still in the high 2.9s, or 2.9s something, not yet in the 3s, and now you're in the 3s.

There's a lot of positives to the fact that you did become a homeowner in 2021, and there's a lot of positives in the buyer's market sense as well when you look at it. As a seller, you are getting top dollar for your home, and as a buyer you're taking advantage of the low interest rates that are still under 4% and will continue to creep up.

We are seeing that the market is shifting. We do not foresee that the market is going to crash or that you're going to have a tremendous price drop, and that's just the reality of it. If you are a buyer expecting for that to happen, you're going to see interest rates rise, but you're not going to see a market crash, at least we're not seeing that as of right now.

So those are your analytics for your year-over-year, for the month of January. If you want specifics in your neighborhood or just general questions on the process, please reach out to me. I'm happy to answer them. Have a fantastic February and we will be in touch. Have a good one. Bye.