[REAL ESTATE] January and February Saw Typical Post-Holiday Dips in Sales
Southern California real estate sales in January 2017 were down nearly a quarter from December, but up more than 5% from the same time last year, according to data from Core Logic, a real estate analysis firm out of La Jolla, CA.
“Southern California home sales were the highest for a January in four years,” said Andrew LePage, research analyst with CoreLogic. “Many of the homebuyers whose deals were recorded in January would have been out shopping in November and December during a rising-rate environment that might have spurred some to buy sooner rather than later.”
However, there was a significant drop in sales from the previous month, though according to LePage, that is standard for January and not cause for concern.
“There was still a normal, sharp seasonal drop-off in sales between December 2016 and January 2017. That’s partly because some people prefer not to buy or sell during the holidays, which translates into a relatively low number of deals recorded in January and February. Historically those months are not good indicators of how the market will shape up during the rest of the year,” said LePage.
Meanwhile, the median price paid for a home in Southern California in January was $455,000 down just over 3% from December, but just over 5% higher than January of the previous year.
According to LePage, the December-to-January price drop, like the drop in sales, is typical for the season.
“Similar to sales, it’s also normal for the region’s median sale price to dip between December and January, and this year’s … decline between those two months is in line with the average December-to-January decrease of about [3%] over the past three decades,” said LePage. “The [5.3%] year-over-year gain for the January 2017 median sale price was the lowest since June 2016, but it was still close to the average year over year increase … of the past two years.”
Locally, there were 33 single-family homes and 12 condos sold in our coverage area this February—also a traditionally low sales month, per LaPage—according to Core Logic.
Lafayette Square boasted the month’s highest local sales, with 13 homes sold in the 90019 zip code. The median price for the area went up significantly, over 50% from the same time last year to $1.2 million.
Two condos sold in the same area for a median price of $533,000, also up, nearly 20%, from February 2016.
Meanwhile, 12 homes sold in Hancock Park’s 90004 zip code, at a median price of $1.24 million, up a staggering 63% from February of last year.
February condo prices in 90004 were up as well, just over 40%, with five sold at a median price of $675,000.
La Brea-Wilshire saw 7 single-family home sales in February, and the 90036 zip code saw a whopping increase in median price of nearly 90% to $2.6 million.
Two condos sold in the area, for a median of $459,000, a nearly 30% increase over the previous year’s median.
Only one home sold this February in Hancock Park’s 90020 zip code, but it went for a whopping $3.69 million, an increase of more than three quarters over the previous year’s median price for the area. Condo prices in 90020 were down, however, nearly 50% from the previous year to a median of $299,000 for the three sold.