In many housing markets across the country, a million dollars could buy a small mansion. But Los Angeles is a high-value market. And $1M isn’t what it used to be.
Pre-pandemic, the median sales price for homes in Los Angeles was $741,000 (as of January 2020). By January 2023, the median sales price was up to $921,750. This means that $1M in 2023 will buy you a slightly better-than-average home in the average LA neighborhood.
As of March 14, 2023, there are 68 single-family listings for sale within LA city limits with an asking price between $995,000 and $1,000,000. These range in size from 740 square feet to 3,229 square feet. They include everything from one-bed, one-bath condos to five-bed, three-bath homes. The oldest was built in 1895, and the newest is still under construction.
These listings are spread throughout the city from the Porter Ranch in the north to San Pedro in the south, from the Pacific Palisades in the West to Boyle Heights in the East. Naturally, home values vary dramatically by neighborhood. What $1M buys in Downtown LA will be very different from what $1M buys in Beverly Hills.
Location, Location, Location.
Several factors, like size, layout, condition, and views, impact home values. But no other factor is as important as location.
In the Pacific Palisades, for example, the median sales price is $3.3M, but you can find small one-bed, one-bath condos available for just under $1M. There are also mobile homes available in the Palisades for under $1M (currently listed for sale between $600,000 and $800,000).
In Downtown LA, on the other hand, the median sales price is sitting at just $595,000. A million dollars downtown could get you a spacious two-bed, two-bath condo downtown. But, with fewer single-family homes built in that area, you’re less likely to find an SFR for $1M in that neighborhood.
If you’re looking to purchase a single-family home for around a million dollars, the San Fernando Valley may be a good option. In Northridge, for example, the median sales price is $960,000. A $1M budget can get you a comfortable three-bed, two-bath home with a garage and a small yard.
Some LA Neighborhoods Don’t Offer Any Homes Under $1M
Some LA neighborhoods are so exclusive that there are no residences available under one million dollars.
Take Bel Air for example. The median sales price in Bel Air is $2.8M. The lowest-priced residence is a 1250-sq-ft 2-bed, 2-bath, listed at $1.25M. There is a vacant lot listed at $595,000, but most vacant lots are also priced at over $1M.
LA Neighborhoods With a Median Sales Price Around $1 Million
There are a few neighborhoods in Los Angeles where the most recently calculated median sales price is right around $1 million:
● Highland Park: $1,022,500
● Hollywood: $975,000
● Northridge: $960,000
● Valley Glen: $949,000
● Cypress Park: $907,000
What Will Happen to LA Prices in 2023?
The median sales prices reflected in this article are from the first quarter of 2023. Since home prices around LA tend to increase in the spring and summer, it is likely that values will be going up in the coming months. Then you can expect another dip as we enter the fourth quarter.
The good news for buyers is that values have come down a bit since the peak in the summer of 2022. However, with LA remaining in high demand, there is no market crash on the horizon. If you are interested in investing in Los Angeles real estate, now’s the time to do it.