August Los Angeles Market Report: July Data
Los Angeles Real Estate Market Trends
The wild ride from Q2 Real Estate continues with the start of Q3 where California existing housing sales recorded record results in July.
The California Association of Realtors announced that existing, single-family home sales in July totaled 437,890 in July on a seasonally adjusted annualized rate. That marked a staggering month-over-month increase of 28.8% from the number of sales in June. Year-over-year sales were up 6.6% from July 2019.
July 2019 had a pretty healthy sales rate, so a 6.6% increase is remarkable considering that we are in the middle of a pandemic. The state-wide median price also hit a record high. It was $666,320. That marked a 6.4% increase month-over-month from June, and a 9.6% increase year-over-year from July 2019
The unsold inventory index in July dropped to a 2.1-month supply of housing from a 3.2-month supply one year ago. The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales.
On the Los Angeles County level, this state-wide trend is only magnified:
For single family homes
- Median listing prices (the point at which one half the homes sell for more and one half sell for less) hit a record high of $769,925 for single family homes, a 10% increase from this time last year and a 7% increase from last month.
- Average listing prices also hit a record high of $1.16M, a 7.4% increase from this time last year and a 3% increase from last month.
- There’s the list price (what the seller hopes to get) and the sale price (what they actually get) and a 93 - 95% list/sale price ratio would be considered good.
- But this month, we’ve broken above 100% on the list/sales price ratio and have been hovering at 100% since March home sales data.
- Not only are homes selling for slightly above the listing price, they are selling at a faster clip
- Median listing prices (the point at which one half the condos sell for more and one half sell for less) were at $548,564 for condos, a 3.72% increase from last month.
- Average listing prices were down slightly 1.82% when compared to last month
- The list/sale price ratio remains strong at 100.6%.
- Condo-townhomes are selling even faster than single family homes compared to last month
What this means for you:
- Buyers are stepping in to meet demand
- The market and Los Angeles continues to show resilience and exceeds all expectations
- As a seller, if you are on the fence, it may be time to get off it
What’s driving this?
- Historic low interest rates with 30-year fixed at or under 3% combined with historically tight inventory levels have pushed prices up.
Will this trend continue?
From my own observation and activity, homes are selling right now if strategically priced but my optimism is tempered with a dose of realism. Yes, many Angelenos want to buy given that home is more important than ever as stay-at-home has become a new way of life. Yes, low interest rates are at historic lows providing an affordability boost. But while LA County is seeing signs of life, we can't predict what additional choppy waters are on the horizon.
My best advice is to act upon the needs of your personal situation and don’t try to time or predict the market. If you need to buy or sell your home, let data be your guide, but let your unique circumstances be the deciding factor.
If you would like a market report for a specific zip code or neighborhood, get in touch at [email protected]
Single Family Homes I July 2020 I Los Angeles County
Condo-Townhomes I July 2020 I Los Angeles County
The statistics presented in the Market Report are compiled based on figures and data generated by IDC Global and Datafloat for the benefit of Rodeo Realty. Due to possible reporting inconsistencies, Days on Market (DOM), average prices and rates of appreciation should be used to analyze trends only. All information should be independently reviewed and verified for accuracy. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Data maintained by the MLSs may not reflect all real estate activity in the market. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.