Los Angeles County median home prices surpass $900,000 for first time-ever

LOS ANGELES - California's real estate market just marked a major milestone - but it isn't necessarily a good one, especially for homebuyers. 

The median price of a single-family home in Los Angeles County has exceeded $900,000 for the first time on record, according to data released by the California Association of Realtors. 

Last year, the median price of a home was $882,020. This year, it's up to $914,640, data shows. 

That nearly 4% increase happened even though statewide, home prices dropped month over month. Last year, the median price of a home in California was $859,800. This year, it's $843,340.

The sale of single-family homes in California also decreased 21.5% from a year ago, marking the fourth straight month of declining sales, according to the data.

It's important to note that while home sales fell, the median price continues to rise in part due to skyrocketing mortgage rates.

Regardless, you'll still need quite a chunk of change to afford a "typical" home in the Golden State, which is home to five of the most expensive metro markets in the country, according to a Redfin report.

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Coming in at No. 1. is the Bay Area, where you'll need to earn more than $400,000 to afford a median-priced home in the San Francisco-San Jose metro area. Following the Bay are Anaheim ($300,000), Oakland ($250,000), San Diego ($241,000), Los Angeles ($237,000) and Oxnard ($233,000). 

September’s statewide median home price was $843,340, down 1.9% from August and up 3.2% from September 2022.

Sales of existing single-family homes in California remained below the 300,000-unit pace for the 12th month in a row. The monthly decline was the fourth consecutive decrease, and the annual decline was the 27th straight drop, data showed.

"As mortgage rates surge to new highs not seen in more than two decades, home sales are being tested and are likely to remain tepid for the next few months," said CAR Senior Vice President and Chief Economist Jordan Levine. "With the Fed planning on holding rates higher for longer, the cost of borrowing will remain elevated and may not come down much in the near term. Housing affordability will continue to hinder sales activity for the rest of the year, especially in the low- and mid-price ranges."

All major regions of California saw fewer homes sold in September on a year-over-year basis.

"More sellers are making concessions as homes are taking longer to sell, fewer homes are selling above asking price, and there are more homes to choose from," said CAR President Jennifer Branchini.

Some California counties reported a year-over-year decline in median prices in September. Lassen County posted the biggest price decline with a drop of -32.6% from last September, followed by Lake (-23.4%) and Mendocino counties (-16.3%).

Los Angeles County is one of just six counties in California where more than half of homes are sold above asking price.

Twenty-nine counties recorded an annual increase in median price, with Mariposa (26.4%) recording the biggest jump in its median price, followed by Calaveras (19.4%) and Tulare (14.9%).

Additionally, data shows the number of active listings at the state level continued to dip on a year-over-year basis for five straight months. 

The median number of days it took to sell a California single-family home was 18 days in September and 27 days in September 2022.

The statewide average price per square foot for an existing single-family home was $417, up from $401 in September a year ago.

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