The market is in a truly neutral position when you view it as a whole, rather than separate neighborhoods. Some areas favor sellers, and others favor buyers. Los Angeles acts more like a cluster of micro markets, which makes it exceedingly difficult to generalize patterns. About 5% of homes will sell for less than their previous price, and 14% will sell at some kind of price cut.
The market has done a good job of rebounding from the real estate crisis. Values have returned to exactly where they were before the big drop, and market growth is slow but steady. The market is growing at less than 2% per year, which is a stable and predictable growth trend. These conditions make for a market that’s above average level of health that is easy to sustain.
Most of the home sales in Los Angeles transpire in a few select areas. Homes outside of those areas aren’t moving in a way that inspires optimism. Some neighborhoods are larger draws, and most buyers don’t even consider homes outside of these small zones. This often leads to lower value homes being left behind. These overlooked homes have created small standstills scattered around Los Angeles.