Los Angeles Real Estate Update - December 2020
Inventory, Inventory, Inventory...that’s been the name of the game since the start of the pandemic and even before. It was still true in November as the number of homes for sale decreased slightly around the election and then rebounded slightly afterwards.
Buyer demand remains high as 2020 is posed to remain strong until the end of the year and well into 2021. Buyer demand along with inventory dipped closer to the election and then bounced back but seems to be slowing up towards the holiday season.
And with a new administration comes new housing plans as Biden plans to give new homeowners a down payment tax credit of up to 15K that they could use at the time of purchase rather than having to wait until they file their income taxes in April. Details would still need to be hashed out in a bill passed by Congress. (https://www.housingwire.com/articles/bidens-15000-first-time-homebuyer-tax-credit-explained/)
The second-home market is still very hot, with 68% of vacation homes nationwide selling in less than one month, according to NAR.
What we are seeing across the board is a market that remains “hot” with buyers who are seeking a quality lifestyle in attractive, safe and, well-managed cities and neighborhoods.
Sales growth remains quite strong at the top end of the market. However, the market appears to be less price-competitive than the entry level—in part because the supply of $3M + homes has been rising in contrast to the rest of the market.
According to the California Association of Realtors, increasing numbers of mortgage applications and request for showings continued through November and is 20% ahead of 2019 levels.
With a series of vaccines slated to become available in December, its possible that sellers who have been waiting on the sidelines will become more confident into 2021 and more inventory (including foreclosures) will become available next year. We are already seeing this in LA neighborhoods such as West Hollywood, Santa Monica and Beverly Center. As we move into 2021, only time will tell if this increased inventory will tip the current market into a
"Buyers' Market". From our standpoint, it looks like it might be headed that way. For more information, click on the link to see our Los Angeles Market Video Update for December 2020.
Sales Statistics - Nov 2020
Source Infosparks / CLAW-MLS (Combined Los Angeles/Westside MLS)