Melrose Avenue is one of the most instantly recognizable “strips” in the world, thanks, in part, to its presence in so many Hollywood films and TV shows. Top-of-the-line shopping & and dining experiences are steps from your door. There are plenty of great houses and condos in this central LA neighborhood.
There’s plenty to discover about the Melrose District when it comes to real estate. Follow along as this article details plenty you need to know.. Let’s get started!
The Melrose District housing market forecast 2023
The first step in understanding the housing market in any neighborhood is to look closer at data collected over the short term and the long term. From there, it will be much easier to have an educated position on Fair Market Value..
Values increasing
One of the most fashionable and, at the same time, historic districts in Los Angeles, the Melrose District has experienced its fair share of ups and downs in real estate prices over the last decade. Since mid-2022, for example, the median list price for all homes in the area has gone up nearly 26% year over year.
Homes with one to three bedrooms saw the highest appreciation in value, while larger properties with more than five bedrooms fell in value by about 10% over the same period. The average home value in the neighborhood currently sits at $1.44m or $625 per square foot, a figure which we expect to continue climbing through the remainder of 2023.
Stable interest rates
Everyone knows that in an effort to fight significant inflation, The Federal Reserve has raised it’s target Fed Funds Rate numerous times since November 2022. This has impacted mortgage rates, and as expected led to a slowdown in the residential real estate market. As of July 2023, however, mortgage interest rates have stabilized to around 6.81%for a 30-year fixed mortgage and 5.92% for a 15-year fixed mortgage. It’s expected that these rates could fall in the coming months.
Negative net population migration
A recent trend to crop up in the Melrose District and the rest of Los Angeles County, and the state as a whole is a drop in population.. This is due to a variety of economic and demographic factors. Although the Melrose District has seen a decrease in population of about 2% since 2000, the lack of residential inventory means this population loss is likely of no impact.
How COVID-19 affected the Los Angeles County real estate market
There’s no doubt that the pandemic has affected the real estate market across the country in a variety of ways, for the better and for the worse. Los Angeles County, in particular, saw some of its population move away to other parts of the state and country with more affordable housing. For example, the housing inventory in the county changed from favoring rental properties (72% pre-pandemic) to having slightly more vacant properties in 2023 (5% across the entire county). The median age also rose to 39, up about two years since 2022.
The Melrose District median home prices 2023
All the real estate data in the Melrose District falls in line with the trends and data points above. As of July 2023, the median price for all homes in the neighborhood sits at about $300,000 higher than one year ago, at $1.44 million. The nearby districts of Melrose Hill, East Hollywood, and Central LA also saw a similar jump in home prices year over year for comparison.
Melrose real estate market: should you invest?
Putting together everything you now know about the Melrose District real estate market, it’s now time to cap off the forecast with a summary. Is buying in the Melrose District's luxury real estate a smart decision in 2023? Overall, the answer has to be yes, so long as you are not trying to "flip" the property. Owning in this desirable LA location is always a good investment long-term.
Reach out to Craig & David Homes for help!
If you have any questions or comments to share, or you’d like to learn more about buying and selling luxury real estate in the surrounding area, get in touch today! Contact Craig & David Homes for more information.
