How is the Los Angeles housing market? Which is the hottest area? There really is not one market in Los Angeles. Neighboring communities may differ greatly from each other in terms of rise in median price, number of sales, available inventory etc. Also price range can make a difference.
Let’s take a look at the market for single family homes and compare the 3rd Qtr 2016 to the same period last year. The areas I will concentrate on are the communities and cities featured on my website.
Santa Monica showed a healthy 19% rise, although sales were down by 7 over last year.
The biggest drop was in the Malibu Beach neighborhood, with a 27% drop in the median price. Brentwood and the Hancock Park neighborhood both dropped 10%.
The highest number of sales were in the Hollywood Hills West area, 115 in total, which was 7 less than the same period last year. Silver Lake – Echo Park were next with 111 homes sold, which was an increase of 17 over the previous year.
Although the greatest rise in median price was in Playa Vista. However Playa Vista consists mostly of condominiums. There are very few single family homes in this community, so it is not a fair comparison.
The healthiest market appears to be Westchester with its solid 24% median price increase and at 93 homes sold, this was an increase of 16 over last year.
Highland Park, the new hot area, is settling down after a spurt of buying over the past couple of years. Investors and home buyers recognized the opportunity there and inventory has slowed down. The median price rose 8% but sales at 62 were down by 35 over last year.
Beverly Hills, Brentwood and the Pacific Palisades all show a drop in the median price with Brentwood the highest at 10%.
The highest median sales price of $6,000,000 was in Malibu Beach, followed, unsurprisingly, by Beverly Hills at $5,078,890.
It will be interesting to watch the Los Angeles housing market next year. How much will mortgage rates creep up? Are we at the top of the market? It is difficult to tell. Would that we had a crystal ball.
You cannot accurately predict the market. However, the time to buy and sell is when you are ready to do so.
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