Los Angeles real estate- lower interest rates have strengthened LA’s housing market after a slow start to the year
Compass Chief economist Dr. Selma Hepp has published an in-depth article examining the Los Angeles real estate landscape.
Here are the key takeaways-
* After a large dip in housing market activity starting in the last quarter of 2018 and first quarter of 2019, housing markets in recent months have mostly bounced back to where they were last summer.
* In July, total sales in Los Angeles County trended at the same level as July of last year, with an increase in sales of homes priced between $1 million and $2 million, up 5 percent year-over-year, being offset by slower sales in other price segments.
*Strong activity among homes priced between $1 million and $2 million bring the levels of homes in that price range to the highest level in the last five years.
*Some West Side communities, which experienced slower market conditions since last year, have finally seen more activity. Most notably, sales in Malibu and Beach Communities North have posted the first annual increase since last summer, up 11 percent year-over-year. The impact of wildfires has had a considerably negative impact on the area with overall year-to-date decline in sales of 26 percent. The most recent uptick was driven by strong sales of homes priced below $2 million while higher priced sales continue to lag.
*For-sale inventory is once again trending below last year’s levels with July’s year-over-year decline for the overall inventory down one percent, and inventory priced below $1 million down 5 percent. Declines follow almost a year of year-over-year increases. And the lower priced inventory is now 24 percent below the 2015 levels.
Also, here is the Compass July 2019 Market Real Estate Market Update which provides a quick summary of the overall market and more detailed statistics on specific areas.