The stock market is all over the place, the Fed just cut interest rates, but the housing market in Los Angeles is still going strong. Here’s my analysis of what the most recent statistics indicate about the state of the market.
LOS ANGELES
The greater Los Angeles real estate market remains robust. The average sales price in Q4 2019 was $2,598,810, up 8.9% from the same time in 2018, and the number of closed sales also increased 11% over that time. Average Days on Market increased slightly, and the listing discount (the percentage difference between the list price and the sale price) was 7.5%, up from 4% in Q4 2018. Both of these metrics suggest that sellers are more willing to negotiate on price than in the past few years. However, the active inventory is down slightly, and the reduced supply of housing coupled with pent up buyer demand has kept prices on an upward trend.
HOLLYWOOD HILLS
In the Hollywood Hills, the average sales price in December 2019 was $2,792,460 down 8% from $3,035,784 in December 2018. But the number of closed sales more than doubled; December 2018 saw 20 closed sales, while this past month had 42. Days on Market actually fell from 59 to 50, meaning on average a houses in the area sell in less than 2 months. The Listing Discount (the difference between the list price and the sales price) is the same as it was at the end of 2018. All of these trends indicate that correctly-priced properties sell quickly and for close to asking price, while properties that buyers view as overpriced will sit on the market unsold.
Inventory fell sharply toward the end of the year, but this may be a seasonal effect of people not wanting to move during the holidays and not a long-term trend. In fact the number of new listings in Dec 2018 is exactly the same as the number of new listings in 2019 and we can expect to see an increase in the number of new listings as the year progresses.
VENICE
The Venice real estate market remains strong. The average sales price in Q4 of 2019 was $2,426,500, up 14% from Q4 2018. The number of closed sales increased slightly from the past year, demonstrating that there is still strong demand among buyers. The average Days on Market rose slightly, meaning it took houses a little longer to sell than compared to last year, and the Listing Discount (the difference between the list price and the sales price) also rose slightly from last year. Inventory in Venice is way up too. There are almost 30% more homes on the market now than last year, and the data indicates that homes that are priced correctly tend to sell faster and at less of a listing discount.
Whether you’re buying or selling (or even renting with dreams of future homeownership), please contact us about how to position yourself to best take advantage of the current real estate market.
Data compiled from The MLS and Douglas Elliman Q4 Market Reports.