More Homes, Slower Price Growth: What It Means for You as a Buyer in Los Angeles and Beverly Hills
More Homes, Slower Price Growth: What It Means for You as a Buyer in Los Angeles and Beverly Hills
If you’re considering buying a home in Los Angeles or Beverly Hills, you may be in a better position than you think. The current real estate market offers more inventory than we’ve seen in recent years, and with this increase comes slower price growth—creating more favorable conditions for buyers. Here’s why this shift is significant and how it could benefit you.
1. More Homes on the Market, More Choices for Buyers
The inventory in Los Angeles and Beverly Hills has grown substantially over the past year, giving buyers more options than during the peak of the competitive, low-inventory market. According to Realtor.com, the number of homes for sale has risen significantly:
“There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”
While inventory levels are still below pre-pandemic levels, this increase is a notable improvement for buyers, especially in luxury markets like Beverly Hills. With more homes on the market, buyers have a broader selection across various neighborhoods and price points. This expanded inventory means you’re less likely to feel rushed to make a decision, and you may face less competition, which can allow for a more thoughtful home-buying process.
In a high-demand city like Los Angeles, where the real estate market is often competitive, more options give you a greater chance of finding a property that perfectly aligns with your needs—whether that’s a contemporary condo in Century City or a historic mansion in Beverly Hills Flats.
2. Slower Home Price Growth, More Affordability
As the inventory of homes rises, the rapid price growth that has characterized recent years is starting to level off. During the pandemic, limited supply and high demand drove prices up quickly, especially in desirable areas like Los Angeles and Beverly Hills. But with more homes on the market now, price increases are slowing, creating more affordability for buyers.
Lance Lambert, Co-Founder of ResiClub, explains this trend:
“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”
In upscale areas like Beverly Hills, where prices have historically surged, slower price growth gives buyers a chance to enter the market without feeling like they’re being priced out. For those looking to invest in a luxury property, this adjustment in price growth means you might be able to negotiate more favorable terms or find a home within your budget without the pressure of extreme bidding wars.
3. Understanding Market Conditions in Los Angeles and Beverly Hills
The real estate market in Los Angeles is diverse, with each neighborhood exhibiting unique price trends and demand patterns. For instance, while inventory has increased in many parts of the city, certain luxury pockets in Beverly Hills, Holmby Hills, and Bel-Air may still have tight inventory and strong demand. This means that, although price growth has slowed overall, there will still be variability based on the specific area and type of property.
This is where a knowledgeable local real estate agent can be invaluable. An experienced agent understands these market nuances and can provide insights tailored to specific areas, helping you identify neighborhoods where inventory growth is leading to more affordable opportunities. Whether you’re looking for a high-rise condo in Westwood or a sprawling estate in Beverly Hills, a local agent can guide you through the process, helping you make an informed decision that aligns with your goals.
4. Why Now Might Be the Right Time to Buy
With more homes on the market and slower price growth, the current environment presents a unique opportunity for buyers in Los Angeles and Beverly Hills. While interest rates may still be a consideration, the increase in inventory allows you to weigh your options more carefully and potentially negotiate better terms.
Additionally, price stability contributes to better affordability, especially in luxury markets where price appreciation has historically outpaced the broader market. In areas like Beverly Hills, Santa Monica, and West Hollywood, this change could mean access to homes that may have been just out of reach a year ago.
If you’ve been waiting for a window to enter the Los Angeles real estate market, now could be an ideal time. With more options and less intense price growth, you have a greater chance of finding a property that aligns with both your lifestyle and financial plans.
Bottom Line
The increase in available homes and the resulting slower price growth provide you with more options and affordability as you navigate the real estate market in Los Angeles and Beverly Hills. This shift could be a great opportunity to find a home that suits your needs without the pressure of rapid price increases. Whether you’re buying your first home, upgrading, or investing in a luxury property, don’t hesitate to reach out for expert guidance to make the most of these favorable market conditions.
