Real estate sales activity in September delivered more evidence that rising mortgage rates and high prices have begun to take a toll on the L.A. housing market.
The number of sales in September took a big drop compared to September of last year while prices edged up at a more modest pace than in recent years, said according to Corelogic, which tracks the real estate market.
The median sales price in September across L.A. County was $595,000 or 3.5% above September of 2017. But the number of homes sold fell 19.3% to 5,621 during the same period.
“The double whammy of higher prices and rising mortgage rates has priced out some would-be buyers and prompted others to take a wait-and-see stance,” said Andrew LePage, a CoreLogic analyst.
On the Eastside, most neighborhoods continued to see prices and sales rise — in some cases significantly last month. For example, the median sales price in Highland Park was up 33% from September of last year to $878,000 according to Corelogic.
But the median sales price in El Sereno and East L.A. — which have been among the most active Eastside markets — fell 3.4% and 4.5% respectively.
Interest and mortgage rates are expected to continue rising, say industry analysts. That will make it harder for more buyers to qualify for a loan and more expensive for home builders to launch new projects.
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