2020 Los Angeles Real Estate Market Report
Another month, another record for the Los Angeles Real Estate Market!
California’s existing home sales and prices hit a record high in August. The California Association of Realtors announced that existing, single-family home sales in August totaled 465,400 on a seasonally adjusted annualized rate.
That marked another month-over-month increase of 16.3% from the number of sales in July, and an increase of 14.6% year-over-year from August 2019.
State-wide median prices also hit a record high: Median prices (the point at which one half the homes sell for more and one half sell for less) hit a record high of 706,900 up 6.3% from July and a year over year increase of 14.5% from August 2019.
To put that 14.5% jump in perspective: This marked the steepest year over year increase in the median price since March 2014 when home prices were recovering from steep drops during the financial crisis.
What’s happening with inventory? The unsold inventory index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales. A 5-6 month supply is considered a normal market, but that high of an inventory rate has not been seen in many years. In August, the index held steady at a 2.1-month supply of housing from a 3.2-month supply one year ago.
Like last month, 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 another record high of $779,000 for single family homes, a 12% increase from August 2019 and an 11% increase from last month.
- Average listing prices also hit a record high of $1.16M, a 12.75% increase from August 2019 and a modest .6% 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.
- Once again, we’ve broken above 100% on the list/sales price ratio and have been hovering at 100% since March home sales data.
- Both median and average days on market dropped from last year meaning homes are selling at a faster rate: 15 median days on market versus 22 from August 2019, and 33 average days on market versus 38 from August 2019.
- Median listing prices (the point at which one half the condos sell for more and one half sell for less) were at $559,000 for condos, a modest 1.8% increase from last month and 6.48% increase from August 2019.
- Average listing prices were up 6% to $682k when compared to last month and up 3.18% from August 2019.
- The list/sale price ratio remains strong at 99.9%
- Unlike last month where condo-townhomes were selling faster than single family homes, this month, both property types are selling at a similar pace: 17 median days on market, down 19.05% from last year and 33 average days on market, down 3% from last year.
Clearly, the Los Angeles Real Estate market has remained incredibly resilient.
Historic low interest rates with 30-year fixed at or under 3% combined with historically tight inventory levels have pushed prices up and created competition. Like last month and based on what’s been happening in my business this quarter, homes are selling right now if strategically priced.
For anyone who is trying to predict where the Los Angeles Real Estate market will go the remainder of the year and heading into Q4, my best advice is to act upon the needs of your personal situation.
If you need to buy or sell your home, let data be your guide, but let your unique circumstances be the deciding factor.
Here is the Los Angeles Real Estate Market Summary for Single Family Residences and Condominiums based on August 2020 housing data in Los Angeles County.
Single Family Homes I August 2020 I Los Angeles County
Condo-Townhomes I August 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.
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