Los Angeles Real Estate Market Update ---- November 2020


In Los Angeles (and nationwide), the "For Sale" inventory has been, and still continues to be limited for buyers who are looking for a home and yearn for more choices. However, in the last quarter (Q3), sellers, perhaps sensing that it was a favorable time to list their properties or wanting to move themselves, caused inventory to spike 21.6 percent year-over-year overall in Los Angeles. The numbers also show some decline in pricing (depending on the areas) but of course this doesn't necessarily tell the whole picture. Could the sales numbers reflect an influx of older homes being put on the market where sellers have been waiting on the sidelines for years and have decided to cash in their equity now? Only time will tell...


Still, this more inventory does not mean plentiful. Properties coming on the market in Los Angeles are still limited, especially in the price range between $500k and $2M where the demand is extremely high. The San Fernando Valley and other outlying areas are particularly in high demand where professionals who are finding out that they will continue working from home through 2021, are looking to relocate their family to larger homes where they can set up a home-office. 


There has been an increase in condos on the market in many areas of Los Angeles including West Hollywood and Santa Monica. Which has given buyers a slight advantage in this market (see pricing stats below).


On the other end, land and development deals have drastically slowed down, possibly due to the future uncertainties caused by the Coronavirus's long-term impact.


Even though there is typically a decline in sales at the end of August due to “back to school”, the numbers indicate that the selling season was still strong through September & October. Desirable homes that were priced accurately were still seeing multiple offers with some homes being sold at over 100K above the asking price! 


Sales Statistics Oct 2019 vs. Oct 2020

Source Infosparks / MLS.


Single Family Homes - 4 Bedroom or More


City of Los Angeles

October 2019 Avg Price - $2.27M October 2020 - Avg Price - $1.59M

Decrease of 30%

Avg days on Market

Oct 2019 – 55 Oct 2020 – 44

Decrease of 20%

# of New Listings

Oct 2019 - 716 Oct 2020 – 811

Increase of 13%


Tarzana

Avg Price

Oct 2019 - $1.292M Oct 2020 - $1.457M

Increase of 13%

Avg Days on Market

Oct 2019 - 49 days Oct 2020 - 26 days

Decrease of 47%

# of New Listings

Oct.2019 - 42 Oct 2020 -37

Decrease of 12%


Beverly Center - Miracle Mile

Avg Price

Oct 2019 - $1.856M Oct 2020 - $1.757M

Decrease of 3.5%

# of New Listings

Oct 2019 – 43 Oct 2020 - 55

Increase of 28%

Days on Mkt

Oct 2019 – 46 Oct 2020 – 24

Decrease of 48%


Santa Monica

Avg Price

Oct 2019 - $3.65M Oct 2020 - $2.45M

Decrease of 32%

# of New Listings

Oct 2019 – 33 Oct 2020 - 41

Increase of 24%

Days on Mkt

Oct 2019 – 99 Oct 2020 – 48

Decrease of 51%


Condos - 2 Bedrooms

City of Los Angeles

Avg Price

Oct 2019 - $817K Oct 2020 -$794K

Decrease of 3%

Days on Market

Oct 2019 – 39 Oct 2020 –37

Decrease of 5%

# of New Listings

Oct 2019 - 171 Oct 2020 - 264

Increase of almost 55%

West Hollywood

Avg Price

Oct.2019 - $934K Oct. 2020 -$954K

Increase of 2%

# of New Listings

Oct 2019 -25 Oct 2020 - 40

Increase of 60%

Days on Market

Oct. 2019 -33 days // Oct 2020 -25 days

Decrease of 24%


Studio City

Avg Price

Oct 2019 - $606 Oct 2020 -$666K

10% Increase

# of New Listings

Oct 2019 -12 Oct 2020 -18

Increase of 50%

Days on Market

Oct. 2019 - 26 days Oct 2020 - 26 days

0% Change


Santa Monica

Avg Price

Oct 2019 - $1.4M Oct 2020 $1.22M

Avg Price is down 13%

# of New Listings

Oct 2019 - 31 Oct 2020 - 61

Increase of 96%

Days on Market

Oct 2019 - 40 Oct 2020 - 41

Increase of 2.5%

This is what I saw when I looked in my “crystal ball”….


Predictions are that the buying frenzy will possibly start to plateau over the next few months due to 3 factors: 


1) School back in session. 2) The typical uncertainty caused by the Presidential election. 3) The holiday season around the corner.

An increase in inventory (albeit a small one) can be advantageous for buyers who are managing to stay focused and keep their eye on the ball. Especially since the interest rates are so low and that will probably remain low for quite a while, at least until the economy starts recovering from the deep damages caused by Covid-19.

With professional jobs being impacted much less than lower-wage jobs (for now…), more available inventory at the top end and the stock market performing much better than labor markets, the luxury sector continues to drive the Real Estate recovery. And areas like Malibu & Santa Barbara/Montecito are experiencing a very strong demand from east-coast luxury buyers looking to escape the “big city”.

Bottom Line

With interest rates remaining near historical lows, the market will hopefully continue its recovery path over the next few months but possibly at slower rates.

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

TO CONTACT OUR SALES TEAM 

PLEASE CALL OR EMAIL US:

tel: +1 (310) 467.8042

email: Michel@BronRealtyGroup.com

9107 Wilshire Blvd #450

Beverly Hills, CA 90210

OR Send us a message with this form:

  • Facebook Social Icon
  • Twitter Social Icon
  • YouTube Social  Icon
  • LinkedIn Social Icon