[REAL ESTATE] Affordable Inventory Still Tight
Southern California real estate sales in November 2017 were down 5.7% from October and down 0.1% from November of the previous year to a total of 19,569 homes or condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernadino and Orange counties combined, according to data from Core Logic, a real estate analysis firm out of La Jolla, CA.
“Total home sales this November were roughly flat compared with a year ago, but that masks the relatively steep [14%] gain in sales of $500,000 or more and the nearly [12%] decline in the number of sales below $500,000,” said Andrew LePage, a research analyst with Core Logic. “Even though the lower price ranges have strong demand driven by economic and demographic factors, inventory tends to be tightest in the more affordable areas and new-home construction has been focused on the middle- and high-end of the market.”
The median price paid for Southern California homes in November was $505,000, the historical peak for the area, first reached in April 2007 and last reached in September 2017. This marked a 2% increase in median price from October, and an 8.6% increase from November 2016.
However, when adjusted for inflation, November’s median is actually about 13% below 2007’s peak.
According to LePage, November’s median re-reaching its 2007 peak is “partly due to a modest shift toward a higher share of sales occurring in the higher price ranges, which nudges up the median.”
Locally, there were 57 single-family homes and 24 condos sold in our coverage area this December.
Hancock Park’s 90004 ZIP code had 21 homes sold in December. The median price for the area was up 25% from the same time last year to $2.265 million. Condo prices for the area were up, too, by about 13% to a median price of $723,000 for the six sold.
Meanwhile, Lafayette Square saw 15 home sales in its 90019 ZIP code, at a median price of $1.116 million up nearly 40% from December 2016. No condos sold in the area.
La Brea-Wilshire saw six single-family home sales in December. The 90036 ZIP code saw an increase in median price of 9% from 2016 to $1.823 million. Four condos sold in the area for a median price of $605,000—no condos sold in the neighborhood during December of the previous year.
Five homes sold this December in Hancock Park’s 90020 ZIP code for a median price of $3.5 million — an increase of nearly 40% from the previous year. Meanwhile, 11 condos sold in the same ZIP for a median price of $425,000, about 40% higher than last year’s median for the same area.