How much should I offer on a home in Los Angeles?

You should offer less than the asking price for a home in Los Angeles. Prices have come down in the last year, and homes are staying on the market longer. The typical home in Los Angeles is listed for $1,099,950, but that number is 7.0% lower than it was a year ago. The average price per square foot is also down 2.6% over the last year, now at $662. This means homes are generally less expensive than they were before. Homes are also taking a bit longer to sell, staying on the market for 50 days. This is 6.4% longer than last year, which suggests buyers have a little more time to make decisions. Fewer new homes are coming up for sale, down 2.9% from last year, and total homes for sale are also slightly down by 0.9%. Nearly 1 in 6 homes, or 15.4%, have had their price reduced. This is a sign that sellers are willing to negotiate. Also, for every two active listings, there is roughly one home that is pending sale (0.39 pending ratio). With prices lower and homes taking longer to sell, you have some room to negotiate. Consider making an offer below the asking price.