This month we have both data from March and the first quarter of 2021, both showing a very busy real estate market!
QUARTER 1 2021 GREATER LOS ANGELES
Average Sale Price SFR and average price per square feet fell slightly from last quarter and last year to $2,471,790. But the Median Sale Price rose slightly to $1,600,000.
The market was robust with almost 40% more sales in Q1 than in the same period last year.
Unlike most of the region, listing inventory increased from the end of the year which allowed for more sales to close. However, demand for housing remains high and eager buyers quickly snapped up the new listings, and the average days on market fell to 64 days and the months’ supply of inventory decreased to 5.4 months. In addition, about a quarter of all sales had multiple offers (compared to 22.5% last year), and the average listing discount (i.e. the percent difference between the list price and sale price) tightened, indicating that sellers are less willing to negotiate on price. Click here to read the report of Q1. (https://www.elliman.com/resources/siteresources/commonresources/static%20pages/images/corporate-resources/q1_2021/losangeles-q1_2021.pdf)
MARCH MICRO MARKET DATA
Looking at Los Angeles County at large, the median sales price in March 2021 was $865,569, which is 20% higher than a year prior. There were also 31% more homes sold and 84% more homes in escrow last month than in March 2020.
In addition, in LA County overall, the average days on market has fallen to 24 days and months’ supply of inventory is only 2.9 months. Plus, almost 40% of the current inventory is under contract!
Most of the neighborhoods followed the same trend as Los Angeles County, i.e. higher median sale prices, more sales and more escrows, coupled with fewer new listings, declining months’ supply of inventory, and fewer average days on market. But every neighborhood and micro market is different. Here are some highlights about some of the neighborhoods covered in the March 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.
In Bel-Air, the median price rose very slightly from the past year, and the number of closed sales and the number of homes in escrow in March 2021 increased sharply from this time last year. There are fewer homes on the market now, and the average days on market has fallen to 65 days. The months’ supply of inventory has also fallen since last year, to 6.3 months, representing a more balanced market between buyers and sellers.
Beverly Hills, the median price increased 15%, number of properties sold and in escrow increased. It had a slight decrease in the number of homes for sale and the average days on market. Months’ supply of inventory fell to 10 months (more of a buyer’s market).
BHPO saw a decrease in median sale price compared to March 2020. But like most areas it saw more properties sold and in escrow, a decline in the number of properties for sale and the months’ supply of inventory (to 7.5 months). But it saw a large increase in average days on market.
Brentwood had an increase in median sale price, number of properties sold and in escrow. Like most areas, it had fewer properties for sale, decrease in average days on market, and months’ supply of inventory decreased to 7 months in March 2021 than March 2020.
Hancock Park saw a 20% increase in median sale price. There were more properties sold and more in escrow than a year prior. Like most areas, Hancock Park also saw a decline in the number of properties for sale, in the average days on market. The month’s supply of inventory fell to 3.4 months (one of the lowest supplies in the prime LA neighborhoods).
In Los Feliz, the median sale price increased by 42% from March 2020, with more properties sold and more in escrow than in March 2020. There were also declines in the number of properties for sale, the average days on market and the months’ supply of inventory (which fell to 3.7 months, another area with relatively low supply).
Malibu and Malibu Beach also followed the trends. But the months’ supply of inventory for both is over 8 months, which signals it is more of a buyer’s market.
Pacific Palisades saw a slight increase in median sale price, and significant increases in the number of sold properties and the number of properties in escrow. The number of properties for sale declined slightly, average days on market decreased, and the months’ supply of inventory fell to 3.5 months.
Palms-Mar Vista had an increase in median sale price, number of properties sold and in escrow. But unlike most areas, it saw an increase in the number of properties for sale and the average days on market. However, it is a hot area and the months’ supply of inventory, which has been low for over a year, fell to 2.4 months (the lowest of all these areas mentioned here).
Santa Monica median sale price increased 41%, and the number of properties sold and in escrow increased. It saw a very slight increase in the number of properties for sale, and an increase in the average days on market, but a decline in the months’ supply of inventory to 5.1 months (a bit more of a buyer’s market than seller’s market).
Sunset Strip/Hollywood Hills/Laurel Canyon had small increases in median sale price and large increases in the number of properties sold and in escrow. There was a small decline in the number of homes for sale. The average days on market increased but the months’ supply of inventory fell to 6.2 months (more balanced between buyers and sellers).
The data in Venice is mixed. There was a 24% decrease in median sale price, but there was an increase in the number of properties sold and in escrow so people are definitely still buying there. There was an increase in the number of properties for sale and an increase in the average days on market, but the months’ supply of inventory fell to 6.8 months.