Los Angeles real estate ended last year on a high note but how long will it last?
According to a year-end report from Douglas Elliman that examined L.A.’s Westside and downtown real estate market was rosy with the median sales price climbing 7.3 percent year-over-year in the fourth quarter to $1.03 million. L.A.’s Westside and downtown real estate market sale had a median of 7.3 percent year-over-year in the fourth quarter to $1.03 million.
“While the market is softer than a year ago, it is still moving very quickly,” said Jonathan Miller, president of the real estate appraisal firm Miller Samuel and author of the report. “Inventory is rising slowly in response to record prices as more sellers are looking to time the market.”
According to The Hollywood Reporter, “The number of sales in the final three months of 2016 fell a dramatic 12.1 percent to 2,803 from a year prior, which signifies the largest drop in sales since the market crash of 2008.”
Colin Keenan, senior V.P. of Douglas Elliman Real Estate said that, historically, the market activity goes up during elections.
“It appears that the election season caused many market participants to pause, creating pent-up demand. After the election, there was a release and anecdotal feedback suggests that the market has jumped. I don’t think this means higher sales volume will be sustained in 2017. I saw this in 2012 as well,” Miller said.
Economist with the California Association of Realtors, Jordan Levin said that the higher-priced homes are going to get some big price cuts:
“In general the trend countywide is that things are slowing down. The market is still growing but the higher-priced homes are staying on the market longer and the premium prices aren’t being met. Folks are starting to get some discounts,” he said.