Los Angeles area home prices showed no signs of letting up in April, climbing 23.6 percent to a median listing price of $1,114,000, according to a new report from Realtor.com.
The Los Angeles-Long Beach-Anaheim metropolitan area posted the second-highest annual increase in median listing prices nationwide, bested only by Austin, Texas which saw a 40.6 percent surge. The nearby Riverside-San Bernardino-Ontario metro experienced the third-highest year-over-year median listing price gain, jumping 22 percent to $512,000.
The typical Los Angeles home spent 49 days on the market in April, down 10 days from a year earlier. The total number of unsold homes, including pending listings, fell by 22.1 percent, while the new listing count improved by 66.2 percent over the same period last year.
At first glance, the rise in the new listings seems like an encouraging sign that inventory is recovering. However, market activity in April 2020 was adversely affected by California’s stay-at-home order — Realtor.com data suggests that new listings in the Los Angeles area dropped by 50 percent during that time.
Meanwhile, in the Inland Empire, the median days on market (DOM) plummeted 28 days compared to the same month last year. The typical home is selling “lightning-fast” within 28 days. The active listing count in the Riverside area declined by 63.7 percent, indicative of just how hot this suburban market really is, as new listings ticked up 33.9 percent annually.
Similar trends are playing out across the country, notes the report. The inventory of active listings decreased by 53 percent year-over-year in April, sinking 1 percent further than the month before. This meant that there were 554,000 fewer homes for sale on a typical day than in April 2020.
Although new listings climbed 32.6 percent, they’re still down 25.5 percent compared to the average rate observed in 2017 through 2019. Realtor.com Chief Economist Danielle Hale explained that these conditions are “helping to drive one of the most competitive seller’s markets of all time.”
“Home prices are continuing to surge and sales are occurring nearly three weeks faster than a normal spring home-buying season,” she added.