L.A. Luxury Summer Market Report

Los Angeles’ luxury housing market has continued to grow as we shift from Q2 to Q3 of 2019.

CoreLogic reported that the six-county median, in which half of the homes sold for more and half for less, rose slightly by 0.2 percent from May 2018 and reached $530,000. While sales dropped 2.7 percent from the year before.

Meanwhile, California’s unemployment rate is at 4.2 percent, a record low for the state. In effect, employers added 282,700 jobs over the year

While there may not be a drastic increase of new listings, inventory has gone up as sales have dropped. In Los Angeles County, the median price rose 1.7 percent from last year to $615,000, as reported by Zillow.

Compared to other states in the nation’s housing market, California prices have dropped which experts believe is due to taxes and departing businessmen.

Looking ahead, California’s economy grew 4.7 percent in 12 months, compared to the overall U.S. rate of 2.8 percent.

Reports indicate that big IPOs in the tech sector have shown that California’s economy continues to be strong. Over the next 12 months, prices are expected to grow another 5.7 percent, as suggested by Zillow.

A few of the major factors in California’s housing market growth are high employment and rising wages, a high number of millennials that are selling, and interest rates that are on the decline.

In Los Angeles County, homes typically receive two offers and sell for around the listing price in about 47 days.

The median list price of a property is around $895,000 while the median sale price is $746,000, as indicated by Redfin. Currently, the total number of homes sold is 2,327 in L.A.

Nearby neighborhoods with the highest average home price include Cheviot Hills Manhattan Beach, Pacific Palisades, and Beverly Hills—all within the range of $2 million – $3 million.

“Now is a great time to buy in Beverly Hills. The market is picking up and is continuing to grow,” commented Jade Mills, the top luxury realtor for Beverly Hills.

“A lot of people are moving around, we aren’t seeing a lot of foreign buyers, although we have seen a few come back into the market. Most of the buyers are local and buying up, especially ones with young families. Also, we’ve seen a number of people selling bigger homes and moving into condos.”

A report from CAR shows that the number of homes and condominiums on the market is up significantly from last year.

Los Angeles home values have gone up 1.9 percent over the past year and Zillow predicts it will rise 0.3 percent within the next year.

The median list price per square foot in Los Angeles is $533, which is higher than the Los
Angeles-Long Beach-Anaheim Metro average of $436.

The median price of homes listed in Los Angeles is $840,000 while the median price of homes sold is $705,200.

Zillow reports that the neighborhood with the highest median price point is Bel Air with
$3,264,800 and Beverly Crest closely behind with $2,260,600.

Selma Hepp, chief economist at Compass San Francisco states, “Buyers should revisit the
housing markets in Los Angeles and San Francisco for new buying opportunities.”

Currently, there are 6,455 active homes on the market, with 538 listed within the last week, as reported by Realtor.

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