Tag: real estate market report

Posted on

Downtown Los Angeles Real Estate Market Report December 2023

L.A. Navigating Through a Landscape of Persistent High Prices, Economic Stagnation

Home Prices Remain High as Economy Stagnates

REAL ESTATE NEWS (Los Angeles) — The real estate market in December 2023 presented a curious scenario: home prices holding steady despite a backdrop of fewer listings, longer sales periods, and declining total sales volume. This phenomenon can largely be attributed to the persistent inflation affecting the broader economy. Let’s explore how inflation played a role in shaping the Downtown L.A. real estate market during this time.

The Influence of Inflation

Economic Backdrop

Inflation, a widespread increase in prices and cost of living, has a multifaceted impact on real estate markets. In Downtown L.A., as in many urban centers, inflation contributed to maintaining property values despite a slowdown in sales activity.

The Cost of Holding Property

For homeowners, persistent inflation often translates to higher costs associated with maintaining a property, including utilities, repairs, and property taxes. This can create a threshold for how low they are willing to go when setting sale prices, thereby contributing to steadier home prices even when market activity suggests a potential for decline.

Investment Perspective

Real estate is traditionally viewed as a hedge against inflation. During periods of high inflation, investors and homeowners alike tend to hold onto real estate assets, anticipating that their value will at least keep pace with the rising cost of living. This mindset can contribute to fewer listings and stable or increasing property prices.

Market Dynamics in December 2023

Fewer Listings, Steady Prices

With fewer homeowners willing to sell, partly due to the inflationary context, the supply in the Downtown L.A. market was limited. This scarcity can help sustain prices as buyers have fewer options to choose from, even in a market where overall activity is lower.

Longer Sales Periods

The increase in average days on market indicates a buyer’s market where buyers are more deliberate in their purchasing decisions, possibly due to inflated living costs and economic uncertainty. However, this doesn’t necessarily lead to reduced prices, as sellers hold firm, influenced by the inflationary pressures on their own financial situations.

Declining Total Sales Volume

The reduction in sales volume reflects a market where transactions are less frequent but doesn’t necessarily impact the prices of transactions that do occur. In an inflationary environment, the value of each sale might hold or even increase, compensating for the lower number of transactions.

Implications for Stakeholders

For Buyers

Buyers in this market may find themselves facing steady or slightly increased prices, despite the slower market. It’s essential to be aware of inflation’s impact on mortgage rates and overall affordability.

For Sellers

Sellers might need to balance the desire for optimal pricing with the realities of a slower market. Understanding how inflation impacts buyers’ purchasing power can help in setting realistic prices.

For Real Estate Professionals

Agents and advisors need to navigate these complexities, offering insights into how inflation impacts both sides of a transaction and advising clients accordingly.

Stagflation Continues

The Downtown L.A. real estate market in December 2023 stood as a testament to the nuanced relationship between real estate and broader economic trends, particularly inflation. While the market experienced fewer sales and longer selling periods, home prices remained resilient, underscoring the role of inflation in maintaining property values. As urban real estate continues to evolve, understanding these economic interplays becomes crucial for anyone engaged in this dynamic market.

How much is a property likely to sell for? Order a written Broker Price Opinion $39. Fill out the online form.

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Posted on

Real Estate Market Report: Downtown Los Angeles – October 2023 vs. October 2022 | Prices Up

The real estate market is a dynamic entity, constantly evolving and influenced by a myriad of factors. Downtown Los Angeles, a hub of commerce, culture, and residential living, is no exception. In this report, we will delve into the data from October 2023 and compare it with the same month from the previous year, October 2022.

Overview:

The data provided offers a comprehensive look into various aspects of the real estate market, including listings that were withdrawn, canceled, expired, sold, pending, on hold, under active contract, and those that are currently active. For the sake of brevity and relevance, our analysis will focus primarily on the sold listings and the duration on the market (DOM) statistics.

Sold Listings:

October 2023:

  • Number of Listings Sold: 38
  • Lowest Selling Price (SP): $353,000
  • Median SP: $550,000
  • Highest SP: $1,555,000
  • Average SP: $685,202
  • Average Price per Sq.Ft.: $683.55
  • Total Volume: $26,037,687

October 2022:

  • Number of Listings Sold: 27
  • Lowest SP: $360,000
  • Median SP: $560,000
  • Highest SP: $1,132,000
  • Average SP: $648,685
  • Average Price per Sq.Ft.: $699.40
  • Total Volume: $17,514,500

Analysis:

  1. Volume of Sales: There was a noticeable increase in the number of properties sold in October 2023 (38) compared to October 2022 (27). This indicates a more active market in 2023.
  2. Selling Price: The lowest and median selling prices saw a slight decrease in 2023 compared to 2022. However, the highest selling price in 2023 ($1,555,000) was significantly higher than in 2022 ($1,132,000). This suggests that while the general market might be slightly more affordable, luxury properties or those in prime locations are fetching a higher price.
  3. Price per Square Foot: The average price per square foot decreased marginally from $699.40 in 2022 to $683.55 in 2023. This could indicate that buyers are getting slightly more space for their money in 2023.
  4. Total Volume: The total volume of sales increased substantially from $17,514,500 in 2022 to $26,037,687 in 2023, further emphasizing the heightened activity in the 2023 market.

Duration on Market (DOM) Statistics:

The DOM statistics provide insights into how long properties typically stay on the market before being sold. A shorter DOM can indicate a seller’s market, while a longer DOM might suggest a buyer’s market.

October 2023:

  • 0-30 Days: 44.74% of listings sold, with an average of 99.03% of the list price received.
  • 31-60 Days: 21.05% of listings sold, with an average of 97.62% of the list price received.

October 2022:

  • 0-30 Days: 33.33% of listings sold, with an average of 99.15% of the list price received.
  • 31-60 Days: 33.33% of listings sold, with an average of 97.96% of the list price received.

Analysis:

In October 2023, a larger percentage of properties (44.74%) were sold within the first 30 days compared to 2022 (33.33%). This suggests that properties in 2023 were moving off the market faster, possibly due to increased demand or more competitive pricing. The numbers pertain to Downtown Los Angeles and nearby loft neighborhoods in MLS Areas 23,42 and 1375.

Market Improving for Home Sellers:

The Downtown Los Angeles real estate market in October 2023 showed signs of increased activity compared to October 2022. With more properties sold, a higher total sales volume, and a shorter duration on the market for many listings, 2023 seems to have been a more dynamic year for real estate in the area. Whether you’re a buyer, seller, or investor, understanding these trends can offer valuable insights into the market’s direction and potential opportunities in the future.

SPECIAL LOFT DEALS: Get a free list of distressed properties, raw lofts and foreclosures. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.