Los Angeles Real Estate Report

Cutting Through the Noise in Today's Housing Market

If you're thinking about buying a home this year, you're probably paying closer attention than usual to the housing market — and you're getting your information from everywhere: the news, social media, conversations with friends and family, and hopefully your real estate agent. After 33 years of helping buyers navigate the Los Angeles market, I can tell you that most of the anxiety I see comes down to two things: home prices and mortgage rates. Let me help you cut through the noise. Whether you're a first-time buyer or looking to move up, having the right information is everything. I've put together a comprehensive collection of tools on my [buyers resources page](/buyers-resources) to help you stay grounded in the facts as you make this important decision.

Thinking About Buying a Home in Los Angeles? Ask Yourself These Two Critical Questions First

Question 1: Where Do I Think Home Prices Are Heading?

One of the most reliable sources for home price forecasts is the Home Price Expectations Survey from Fannie Mae — a quarterly poll of over one hundred economists, real estate experts, and investment and market strategists. According to the most recent release, experts project that home prices will continue to rise at least through 2028.

Now, let me be clear: the rate of appreciation may not match what we saw during those extraordinary pandemic years. But the key takeaway is that prices are expected to rise — not fall — for at least the next five years. In a market like Los Angeles, where inventory is persistently limited and demand stays strong, this trend is especially relevant.

What does this mean for you? By buying now, your home will likely grow in value, and you should build meaningful home equity over the years ahead. But if you wait, based on these forecasts, that same home will only cost you more later. I've seen this pattern play out time and again across neighborhoods from Silver Lake to the Westside — those who act on solid data tend to come out ahead.

Question 2: Where Do I Think Mortgage Rates Are Heading?

Over the past year, mortgage rates spiked in response to economic uncertainty, inflation, and aggressive Federal Reserve policy. But there's an encouraging sign: inflation is moderating. And historically, when inflation cools, mortgage rates generally fall in response. That's exactly what we've begun to see in recent weeks.

Now that the Federal Reserve has signaled a pause in their Federal Funds Rate increases — and may even cut rates in 2024 — experts are growing more confident that rates will continue to ease. Danielle Hale, Chief Economist at Realtor.com, put it well: mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer, providing key affordability relief to homebuyers.

The National Association of Realtors echoed this sentiment, noting that mortgage rates have likely peaked and are now falling from their recent high of nearly 8%, which should improve housing affordability and bring more buyers back to the market.

No one can say with absolute certainty where rates will go from here. But the recent decline and the Fed's decision to pause rate increases signal real hope on the horizon. While there may be some volatility along the way, the overall trajectory points toward improved affordability. For sellers, this shift in buyer confidence can also create opportunity — you can explore how on my [sellers resources page](/sellers-resources).

Key Takeaways for LA Home Buyers

• →Home prices are projected to rise through at least 2028, according to Fannie Mae's expert survey — waiting will likely cost you more.
• →Mortgage rates have likely peaked and are expected to ease as inflation moderates and the Fed considers rate cuts.
• →Buying now positions you to build equity as prices appreciate, even at a more moderate pace than recent years.
• →In competitive Los Angeles neighborhoods, limited inventory means price stability is even more pronounced.
• →Stay informed with reliable data rather than reacting to headlines — work with an experienced agent who knows the local market.

Frequently Asked Questions

Thinking about buying a home in Los Angeles? With 33 years of local market experience, I can help you make a confident, well-informed decision — whether you're buying your first home, upgrading, or navigating a probate or trust sale. Let's talk.