In December, LA County home sales activity experienced an unusually high 38 percent increase on a monthly basis. According to Andrew LePage, analyst for CoreLogic, this large uptick was the result of newly implemented mortgage rules, TRID, and more buyers and sellers looking to close before year’s end for tax purposes.

  • LA County's median home price is roughly nine percent off its peak.
  • Lower priced homes in LA County saw the largest increase in value on a year-over-year basis.
  • New homes sales activity in the county noticeably trails historical averages.

In December, LA County home sales activity experienced an unusually high 38 percent increase on a monthly basis.

[Tweet “In December home sales activity in Los Angeles County rose by 38 percent on a month-over-month basis.”]

According to Andrew LePage, analyst for CoreLogic, this large uptick was the result of newly implemented mortgage rules, TRID, and more buyers and sellers looking to close before year’s end for tax purposes.

“I don’t want to overvalue the TRID impact,” he said. “But it did impact things.”

Within LA County a total of 7,196 homes sold in December, according to a Southern California data brief from CoreLogic. During November, 5,202 houses traded.

“It’s normal for sales to increase from November to December. I would have been surprised if they hadn’t,” LePage said, noting that a 10 to 15 percent month-to-month increase is common.

The December home sales total includes 5,032 existing single-family, 1,788 existing condo and only 376 new home sales. The volume of new homes sales is nearly 49 percent below the average number of new homes sales in December, 733 sales, dating back to 1988.

LA county home sales annual gains consistent

While month-to-month changes were unusual, sales activity and home price growth on a year-over-year basis were in line with previous month. The 7,196 home sales in December equated to a 8.2 percent year-over-year rise.

The median price of a sold home last month inched up by 8.1 percent year-over-year to $500,000. At half a million dollars, the median home price in LA County is now 9.1 percent off its peak.

Aside from historically thin inventory, the main driver of appreciation has been value growth lower price point homes have recently experienced, LePage noted.

Lower price point homes in LA County would typically be considered as those valued at less than $400,000. Appreciation in this category doesn’t bode well for overall affordability or first time buyers.

Of the 20,890 home sales that occurred in December throughout the six counties that comprise Southern California, 34.4 percent closed in LA County. According to LePage, this is no surprise.

Email Erik Pisor

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×