The Los Angeles housing market continues to cool, with the number of discounted listings hovering just below its peak since the start of the pandemic.
In September, the number of listings with price reductions in Los Angeles County was 4,020, down from a pandemic-era high of 4,244 last July, according to Realtor.com data. The metric shows an erratic swing over the past year. In January, the number of discounted listings was at 676, the lowest since at least 2016. This means that listings with price reductions have grown nearly sixfold in less than a year.
The bargains come as mortgage rates climb. Last week, 30-year fixed-rate mortgages averaged 6.92 percent, the highest rate since April 2002. The interest figure represents more than double the 30-year fixed-rate from last year.
However, price cuts are not the only indicators of a weakening housing market for the county. The number of pending sales also dropped to the lowest levels since the early months of the pandemic.
In September, the number of pending sales — defined as a state in which a seller has accepted an offer from a buyer — in Los Angeles County dropped to 5,581, the lowest since 5,609 in April 2020. The figure represents a drastic drop from the heights of the past few years. Since the early months of the pandemic, the number of pending sales in the county repeatedly exceeded pre-pandemic levels, reaching an apex of 10,163 listings in September 2020.
The most expensive pending sale in the county is the so-called “Glazer Estate” at 601 Mountain Drive in Beverly Hills. The mansion, which replaced the former home of singer Dean Martin, has a last asking price of $59 million.
The number of active listings, meanwhile, still lag compared to pre-pandemic numbers. In September, the county registered 10,833 active listings. The figure is up from a pandemic-era low of 4,943 from last January. However, it’s still much lower than pre-pandemic numbers, which had a high point of 15,619 in November 2018.
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