Analysis: Active residential listings in LA and where there's lots of action. (Part 2)

We analyzed 2000 residential properties sold in 2017 thus far. Here's what we learned about what's selling, at what prices and at what volume. This is especially useful for homeowners looking to sell and get into the market mix.

Key takeaways:

• About 2000 residential property deals (from single family homes to condos) have closed in 2017 year-to-date (**see areas below). The average close price is about $1M, while the median is about $700K. In other words, these are the prices homes are typically selling for across the greater LA area.
• These prices are dramatically different from what we're seeing in the current active listing space. If you recall from the previous post, the average price of active listings is $2.2M while the median is $988K. These are 200% higher than the average and 50% higher than the median of what's actually been closing.
• Almost 50% of deals are for properties between 1000 - 1500 square feet. This is where the bulk of the competition is highly concentrated. These homes are selling for anywhere between $600K - $800K on average. These are pricing anchors for sellers who want to charge closer to $1M for homes within this size range.
• Interestingly, 25% of deals are for homes above 2000 square feet. This highlights the ability of larger homes to take a chunk out of the selling share. Larger homes are definitely closing at a healthy pace, so there's clear demand.
• For homes between 2000 - 2800 square feet, $1.1M - $1.6M seems to be the sweet spot price range based on average closing prices in 2017.

**Areas we analyzed: Los Angeles, Burbank, Glendale, Pasadena, Sherman Oaks, Northridge, Tarzana, Beverly Hills, Granada Hills, Van Nuys.**

So what does this all mean? First, closing prices are way below the prices of active listings, so as we've mentioned, there will be pressure to defend value. We do know that supply is low, so sellers can still have an advantage if they position their homes the right way.

Second, there are pricing anchors for areas where there's high competition in terms of square footage. Sellers should be aware of this and be sure to focus on key differentiators of their homes and neighborhoods that justify prices above median or average.

Interested in talking strategy? We can help. You can also try our free market analysis, and we'll provide something tailored just for you.

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Are you ready for more competition? The spring wave of new residential listings is almost here.

There are over 2000 active listings in LA right now and the competition is about to intensify. What can buyers and sellers expect? Here's what the data tells us.

According to Realtor Magazine, spring is by far the hottest season for new homes to enter the market (see the chart below). We can expect active listings to skyrocket during this period well above 2000. And make no mistake there will be winners and losers.

For buyers, this means more choices. For sellers, it's all about increased competition. This is the season that rewards homeowners who know how to position their homes to ideal buyers. Buyers, on the other hand, will be rewarded for doing their homework early and understanding the the lay of the land when it comes to price and value.

In both cases, data is your best ammunition! 

Stay tuned for the next post when we provide an overview of current listings throughout LA. We'll tell you what to look out for and what we can expect with the new wave of listings coming this spring.

Feel free to reach out any time if you would like a custom analysis of your market. You can try our free market analysis service.

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Analysis: Price action in Burbank and what it says about the competition for ideal buyers.

Burbank is one of the most competitive markets in LA. Recent price action says a lot and buyers and sellers should take note. We analyzed price movements to show you where there's high competitive pressure.

Here are the key takeaways:

• There are 48 active listings in Burbank for single family residences. This is the size of the active pool buyers are considering if they want to move to Burbank. For sellers, this is your larger competitive pool.
• The average price is $973K, while median is $820K. When average is greater than the median, this means there are a handful of really expensive homes pulling the average up (common in LA). 
• Two-thirds of active listings are between $540K - $900K. This is where we're seeing most of the pricing action. This is the meaty part of the market.
• Since December 2016, we've seen 13 price decreases among active listings. That means 27% of all active listings in Burbank have lowered their prices.
• The average price decrease is $21K, median is $15K. This is especially interesting considering many believe this is a sellers market (low supply high demand).
• What we're actually seeing is an overestimation of value and weak positioning of homes for almost a third of active listings in Burbank.

It will be interesting to see what kind of price action we'll see in the future, especially as more listings flood the market this spring. This is something buyers and sellers should pay attention to closely, especially if they wanna jump in the market.

It's only gonna get more competitive, so you need to be prepared. We can help. Try our free market analysis service. We'll get back to you with a tailored assessment of your market.