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Buying a Home in Los Angeles, How is the Market?

Posted by janepeters on March 3, 2016
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If you are thinking of buying a home in Los angeles, then you are probably reading up on the real estate market in general. However, buying a home in Los Angeles has its own challenges.

Each market is unique and knowing which one you are in can help to prepare you and help you avoid the frustrations you are likely to face.Buying a home in Los Angeles, how is the market?

So what is the Los Angeles real estate market? Let’s concentrate on the cities of Malibu, Culver City, West Hollywood, Beverly Hills, Santa Monica, and Los Angeles (does not include all communities).

(Information taken from the MLS/CLAW deemed reliable but not guaranteed.)

All Homes

  • In most areas it is very much a sellers’ market which means that inventory is low and competition is high. There are a total of 2,633 homes listed (both single family and condos), and the number sold over the past six months was 5,538. This indicates there is only three months of inventory available. Anything up to five months is a sellers’ market.
  • 36.80% of homes sold within 30 days, and the average sold price versus the list price was 102.34%. This means that most of these homes received multiple offers which resulted in them selling over the asking price. The lowest average sold vs list price was 96.37%  for 11.72% of homes which sold in over four months.
  • The average Days on the Market (the time they took to sell) was just 60.
  • The median sales price was $716,240. This is an increase of almost 5% over the same period last year.

Under $1 Million

  • There are a total of 1,284 homes listed for sale with 3,769 sold over the past six months. This is an extremely low two months worth of inventory.
  • 39.37% of homes sold within 30 days, and the average sold price versus list price was 102.55%. The lowest average sold vs list was 98.17% for 9.98% of homes which sold over four months.
  • Average Days on the Market was 56.
  • The median sales price was $535,000. This is an increase of 5.11% over the same period last year.

$1 Million to $5 Million

  • There are a total of 1,002 homes listed for sale with 1,582 sold over the past six months. This brings inventory up to 3.8 months which is still a sellers’ market.
  • 31.35% of homes sold within 30 days, and the average sold price versus list price was 102.01%. The lowest average sold vs list was 94.51% for 14.48% of homes which sold over four months.
  • Average Days on the Market was 67.
  • The median price was $1,591,250. This was a 3.43% drop from the same period the previous year.

Over $5 Million

  • There are 355 homes listed for sale with 148 sold over the past six months. This shows an inventory of just over 14 months which indicates a strong buyers’ market.
  • 23.65% of homes sold within 30 days, and the average sold price versus list price was 97.85%. The lowest average sold vs list was 89.87% for 27.03% of the homes which sold over four months.
  • Average Days on the Market was 105.
  • The median price was $7,500,000. This was a 3.45% increase over the same period the previous year.

Overall Los Angeles remains a sellers’ market, especially in the below median price range. And surprisingly even up to the $5 million price range multiple offers are still in effect, indicated by the percentage sold vs list price.

If you are buying a home in Los Angeles right now, you are going to need patience and stick-with-it-ness. But don’t give up. Hopefully we will start seeing more homes come on the market soon.

Need Help? Have questions? Fill out the CONTACT FORM or call Jane at 310-351-9208

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