We took at look at over 2800 active residential property listings in LA to give you a sense of where there's action and what sellers can expect as the season heats up. Here's what we found.
Key takeaways:
- There are currently over 2.8K active listings in the greater LA area. This includes single family residences, townhouses and condos. This is the size of the active pool in LA that buyers will be considering in the weeks and months to come. As we mentioned in a previous post, however, you can expect this number to increase significantly towards the end of March all the way up to June.
- The median price of all active listings is currently $988K, while the average is $2.2M. When average is greater than the median, this means there is long tail of very expensive properties pushing the stats higher.
- Right now, 1/3 of all listings are well above $1.5M. This is a pretty solid distribution of competition across all price points.
- Single family residencies account for 71% of all active listings (just over 2000 listings). The median value of single family residencies is currently $1.2M across all areas.
- About 10% of active listings (200) have lowered their price by a median reduction of $29K. That's pretty substantial and indicates plenty of competition for the right buyers.
- Beverly Hills and Pasadena have by far the most active listings with about 200 each. In these types of extremely competitive environments, we can expect more downward pressure on price as properties will compete for the best buyers.
So what does all of this mean? It's simple. The season is just getting started and competition is already ferocious.
What I'm most looking out for is price action. Right now 10% of listings are consistently lowering their price. With more listings entering the market, it will be interesting to see what happens to that number.
I still think it's a sellers market. I do think homes need to be positioned strongly to the right buyers so they can uphold their prices. Right now, at least 10% of homes are missing out on the low housing supply advantage.
Are you thinking of selling your home and want to talk strategy? Feel free to reach out. You can also try our free market analysis service to help you with your research.
