Blog List >  LA Market Update: Few Buyer Options Leads to Drop in Los Angeles Home Sales in June
LA Market Update: Few Buyer Options Leads to Drop in Los Angeles Home Sales in June
Jul 30 2018 3:52PM Posted by Pacific Union, JULY 2018
 
FROM OUR COMPANY CHIEF ECONOMIST, SELMA HEPP
  • June home sales — including single-family residences and condominiums — in greater central Los Angeles fell notably compared with last year, down 20 percent.
    • Large drop in some relatively more-affordable communities - Eastside saw the largest year-over-year drop, down by 36 percent.
    • While sales below $1 million continued falling trend from the beginning of the year, June shows a relatively large decline in sales of homes priced between $2 million and $3 million.
    • Overall year-to-date sales of homes priced higher than $1 million are still tracking above last year, up 5 percent. 
    • NELA and Mid L.A./Baldwin Hills continue to benefit from strong sales of homes priced between $1 million and $2 million.
    • Despite the overall decline, sales of homes above $2 million trended higher in Silicon Beach, Eastern Cities, Foothill Communities, Greater Pasadena, and Mid-City. Declines were driven by Beverly Hills/Holmby Hills/Bel-Air, Brentwood/Santa Monica/Pacific Palisades, Hollywood Hills, and West L.A.
  • Inventory dropped by 15 percent from last June, with all greater central Los Angeles neighborhoods seeing significantly less supply on an annual basis. 
    • Inventory of homes priced below $1 million dropped by 27 percent from last year, while inventory priced higher than $1 million was down by 3 percent. Only NELA showed a solid improvement from last year.
    • New listings in June decreased by 11 percent year over year in June, which suggests that availability for July sales may suffer as well; there were notable drops in the East and West Valleys, Downtown L.A., and Silicon Beach.
  • Despite fewer home sales, median home prices continue with robust growth, up 12 percent from last June. 
    • Mid-City is now a million-dollar neighborhood, with prices jumping by 28 percent from last June to a median of $1,065,000.
    • Eastside home prices grew by 26 percent, without pressure coming from higher-priced sales.
    • Median home prices in Silicon Beach and Eastern Cities increased by more than 20 percent.
  • Other indicators suggest that demand remains strong, particularly for homes priced less than $2 million. 
    • For homes priced below $2 million, a decline in the median days on market, an increase in absorption rates, and more homes selling for premiums all suggest solid buyer demand. 
    • Some buyer fatigue remains for homes priced between $2 million and $3 million.
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