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The CA Association of Realtors has released the February 2025 Housing Market Statistics. Most of these sales went into contract in January with a 30 day escrow to result in a January closing. So these statistics represent coming out of the traditionally slow holiday season.
In the Los Angeles County real estate housing market statistics the median price dropped 3.9% in February over January. Same month last year prices fell just under 2% in February over Januaryin Los Angeles County so this year is a little higher drop. Median price increased this year in Ventura County an amazing 10.8% whereas last year same time the median price only rose 2.3%. Median price is still up 4.3% in Los Angeles County from same time last year while Ventura County is up a stron 8.9% according to the California Association of Realtors.
I also like to follow where the median price stands compared to it’s highest level. Los Angeles’ all time high median price is still $960,370 from September 2024. Ventura’s all time high median price is $970,000 from July 2024. 2025 is starting to gain momentum so I suspect we will be back near the peak median price shortly. I have to repeat myself – real estate markets are very local so pay greater attention to the local real estate news.
The total sales volume month to month increased 4.8% in Los Angeles County month over month and increased 6.3% in Ventura County over the previous month. However year over year sales volume was down 2.4% in Los Angeles County and up 1.4% in Ventura County. Remember Los Angeles County was experiencing the Eaton and Palisades fires in January when most of these properties went under contract.
Here are the interest rate levels for the past year.
In January mortgage rates increased to over 7%. Since then they have dropped and sit around 6.65%.
The other factor for Buyers in January was their concern about whether they would be able to get homeowner’s insurance as required by their Lender. I was surprised to see that Buyers of condos and townhouses have been having the hardest time. Rates have increased for HOAs due to large claims in other states, such as Florida, for issues related to deferred maintenance. So some Associations are changing carriers or increasing their deductible to be able to afford policies with the rate increases.
In the San Fernando Valley it is still a slight Seller’s market as inventory increased to 4.6 months of inventory in January and since has dropped down to 4.3 months. This increase in inventory likely contributed to the drop in median price at the same time.
I continue to watch – California’s economy (especially the unemployment figures), and China’s economy.
According to the Employment Development Dept (EDD) the seasonally adjusted unemployment rate in Los Angeles County inched up over the month before to 6.1% in January 2025 which was higher than last January’s 5.4%. In Ventura County, according to the EDD, the unemployment rate in Ventura County ticked up to 5%. These compare to California’s rate of 5.5% and the National rate of 4.4%.
I like to keep an eye on news about China’s economy. I found this information from Rand to be interesting. If you would like to read the Full article from Rand.org Click Here
China’s economy has settled at a growth rate under 5%. It is interesting that their recent growth stems from the old economy not technology and the new economy because a lot of the headlines focus on Tech. The big question mark is how trade relations settle in with the new administration.
My view of Consumer Sentiment about Housing
From my own recent experience in our local market, many of the current transactions are occuring with people going through life transitions (couples combining households after marriage, growing families who need more room for children, seniors downsizing and/or relocating or a death in the family). They are watching home loan rates closely, their budgets closely and not jumping in to quickly. This means we are seeing a higher number of properties sit on the market 30 to 60 days as compared to a year ago. Some of these homes were priced too high to start, as some agents rely almost exclusively on past data which is not appropriate in a market where prices are moving down slightly. And Buyers and Sellers are seeing information from online sources, like Redfin and Zillow, which often don’t reflect the condition and key neighborhood features. Most of the available houses that are priced realistically are selling near their asking price but are taking 30-60 days to sell vs the 7 – 10 days of a year ago.
Over Thanksgiving I went to visit my Dad and Stepmother in the mountains of Arizona, in a smaller town. A few houses came on the market in their neighborhood while I was there. And similar to here there seems to be a “popular” price point for houses regardless of the condition or features. In West Hills, the number seems to be about $950,000 for a 1200-1600 sq foot house regardless of whether it has been remodelled, any upgrades to key systems, such as the roof or Air Conditioning, or alternatively is in close to original condition. In the mountains of Arizona the number is $650,000. I am not sure if it is the Realtors or the Sellers or who are being unreasonable in their price but it doesn’t make sense to me that houses in such dissimilar conditions and desirability have the same price.
If you would like to discuss these housing market statistics, the real estate market in general or anything in particular, I hope you’ll reach out to me.
Who to Call
General real estate agents are great for working on every day transactions but if you are a Senior who is downsizing, a family settling an Estate in Probate or Trust administration or a family in a Divorce you need a real estate professional trained for these cases.
For a free consultation on your home’s value, how to prepare your home to sell or the real estate market in general call me at (818)570-1144 or email Janey@JaneyBishop.com or visit https://janeybishop.com
SRES, CPE, CPRES, RCSD
Senior Real Estate Specialist
Certified Probate Expert
Certified Probate Real Estate Expert
Real Estate Collaborative Specialist – Divorce
