Navigating the Southern California Real Estate Market: Opportunities and Challenges in 2023

After losing out on more than a dozen properties during the pandemic housing boom, Stephen Jackson finally found success in the real estate market. Jackson, a 31-year-old human resources manager, recently purchased a two-bedroom condo in downtown L.A. at $20,000 below the list price after it had been on the market for 72 days.

Jackson’s success comes at a time when the housing market is experiencing a modest rebound. Mortgage rates, though still elevated, have come down from their recent highs, and home prices have fallen as sellers struggle to attract offers. In L.A. County, the number of signed purchase contracts has improved from a 51% drop in December to a 42% drop in the four weeks ended Feb. 5, according to data from Redfin.

Despite the improvements, uncertainty looms over the housing market. Mortgage rates have resumed their climb in recent weeks, and potential buyers remain sensitive to the changes. Some experts predict further declines in Southern California home prices, while others believe prices may have already hit bottom.

For individuals like Dana Robinson and Scott Rowden, who rent an apartment in Sherman Oaks and hope to buy a house in the neighborhood, the current market conditions present challenges. With nearby houses typically listed above $1.5 million, the couple plans to start looking for a home late this summer or early fall in hopes that prices will have fallen enough to make their dream a reality.

As buyers weigh their options in the fluctuating market, the decision to purchase a home now or wait for further price declines remains a difficult one. With affordability concerns and the potential for continued market volatility, prospective buyers must carefully consider their options before making a move.