It has been a little over a year since the initial COVID shutdown went into effect in Los Angeles, and this time last year, we were stuck home wondering how we were going to survive a pandemic, let alone sell houses during one. None of us were predicting that we would have one of the busiest years ever, but the pandemic changed how we all live and work, and people’s demand for new housing skyrocketed.
In LA County, the median sales price in February 2021 was $825,000, which is 18% higher than a year prior. There were also 13% more homes sold and more homes in escrow last month than in February 2020.
However, new inventory of single family homes in the county has fallen dramatically since last February; there are 58.4% fewer houses on the market now as there were a year ago, which is keeping pressure on the market (source). In addition to the reduced supply of inventory, the average number of days on market has decreased 30%. Homes are selling faster and for more money as the large pool of buyers compete with each other for the limited inventory of housing stock, a trend that will most likely continue.
Of course every neighborhood and micro market is different. Here are some highlights about some of the neighborhoods covered in the February 2021 Micro Market Report for Los Angeles. Click here to read the full report and to see statistics for even more neighborhoods and counties in Southern California.
Malibu and Malibu Beach represent the hottest micro market in Los Angeles right now, with lots of activity and rising prices. Both areas saw massive increases in median price (to $3,760,000 for Malibu and $9,100,000 for Malibu Beach) and increases in number of sales properties in escrow compared to a year ago. There are also fewer properties for sale now than a year ago and the month’s supply of inventory decreased to 9-11 months.
Other hot areas that saw rising median prices and falling inventory are Brentwood (where median price increased 33% to $3,650,000 and the number of sales increased, but fewer properties were listed for sale and month’s supply of inventory fell to 8 months); Pacific Palisades (which saw an increase in median price to $3,805,000, increase in number of sales sold, decrease in number of properties for sale, and the month’s supply of inventory fall to 4 months); Hancock Park (where median price increased 32% to $1,860,000, and the number of sales increased, but fewer properties for sale and the month’s supply of inventory fell to 6 months); and Los Feliz (although it only had a modest increase in median price to $1,830,000, there was a large increase in number of properties sold. In addition, there were fewer properties for sale and the month’s supply of inventory fell dramatically to 3 months – definitely a seller’s market).
Other hillside neighborhoods saw similar trends. In Bel Air, the median price decreased 18%, but the number of properties sold more than doubled from last year. The number of properties for sale and month’s supply of inventory decreased (to 10 months’ supply). Sunset Strip/Hollywood Hills/Laurel Canyon likewise experienced a median price increase, an increase in number of sales, fewer properties for sale, and falling month’s supply of inventory to 6 months in Laurel Canyon and 9 months in Sunset Strip.
Activity in Beverly Hills and BHPO was a bit sluggish. Both areas saw modest increases in median price and decreases in the number of properties sold, and both have fewer homes for sale now than a year ago and falling month’s supply of inventory. However, the month’s supply in BH is 13 months and in BHPO is 10 months so even though there are fewer homes for sale now compared to a year ago, both these areas still have relatively high month’s supply of inventory (and are therefore more of a buyer’s market).
In Palms-Mar Vista, there was a modest increase in the median sale price, an increase in the number of properties sold, and an increase in the number of homes for sale, but the month’s supply of inventory fell to 4.6 months (making it a buyer’s market).
Santa Monica had a 34% increase in median sale price to $3,260,000 but a decrease in number of properties sold. It was also one of the few areas to experience an increase in inventory: there was a slight increase in the number of properties for sale and an increase in the month’s supply of inventory to 13 months, a promising sign for buyers looking in Santa Monica.
Venice saw a decrease in median sale price, but the number of properties sold increased. The number of homes for sale also increased compared to Feb 2020, but the month’s supply of inventory has been falling since then and is now 6.5 months.