Embattled L.A. Homebuyers Step Back from High Prices and Competition - Redfin Real Estate News

Embattled L.A. Homebuyers Step Back from High Prices and Competition

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Updated on October 6th, 2020

Home prices in the city of Los Angeles rose 7.1 percent in July from a year earlier to $600,000 – nearly double the price buyers were paying for an L.A. home five years ago. Home sales declined significantly, falling 9.3 percent compared to last July, mirroring a nationwide trend of declining sales activity. Redfin analysts estimate that the large drop in sales is at least partially due to the way the calendar was laid out, with a below-average number of business days this July and an above-average number last July. Just the fact that there were fewer days for closings to take place is estimated to have contributed to a 7.5 percent drop in sales nationwide. 

LA Median Sale Price (8)
LA Home Sales (5) (1)

The number of homes for sale continued its upward trend in July as inventory increased 12.4 percent from last year. Although the number of homes for sale has increased substantially, there still remains a scant 2.7 months of supply. Although six months of housing supply is considered balanced, the housing stock has fluctuated between 1.5 and just over three months of supply since 2012 when the recovery began to pick up steam.

LA Invnentory (2)

New listings grew by only 4 percent over last year (about 200 homes more than one year ago), yet there were about 7,200 homes for sale overall in July, the largest number of homes for sale in L.A. since June 2012. At the same time, the median asking price in June, when many offers that eventually close in July are made, was $650,000, the highest median list price on record since Redfin began tracking this data in 2009. Homes sat on the market for about 30 days, a full week longer than the same period last year.

“It’s gotten to the point in L.A. where sellers are asking too much and buyers are getting fed up,” said Redfin real estate agent Nikki Kilmer. “Many homes that hit the market in May and June are still sitting at a price many buyers aren’t willing to pay. There’s a sense in the market that the tables are about to turn-–as the summer comes to a close those buyers who aren’t in a rush are poised to benefit from less competition and more flexible sellers in the fall.”

Area Trends and Hot Neighborhoods

The fastest markets were Fox Hills and Eagle Rock, where the typical home sold in 13 and 17 days respectively. Tarzana and Brentwood both saw the largest annual price increases of the neighborhoods Redfin tracks. Prices climbed 37.8 percent in Tarzana to a median sale price of $675,000 and by 36.5 percent in Brentwood to $1,825,000.

There was a handful of neighborhoods in July where more than 50 percent of the homes sold for more than the asking price. But more than 60 percent of homes sold in Fox Hills and Crenshaw sold above list. It’s no coincidence that both of these neighborhoods are centrally located in L.A. and have median sale prices below $500,000.

Here’s what’s happening in your neighborhood:

Place Median Sale Price Year-Over-Year Homes Sold Year-Over-Year Inventory Year-Over-Year New Listings Median Days on Market Avg Sale-to-List
Beverly Glen $1,482,500 -3.1% 14 -36.4% 44 41.9% 39 26 100.2%
Beverly Hills Post Office $2,130,000 18.3% 45 -30.8% 128 21.9% 111 43 98.2%
Brentwood $1,825,000 36.4% 127 -13.0% 132 3.9% 172 26 100.0%
Central LA $845,000 5.6% 987 -4.5% 1,072 9.6% 1,431 32 99.1%
Century City $1,047,000 19.7% 72 -25.8% 85 -15.0% 109 23 99.7%
Chatsworth $535,000 -2.9% 116 5.5% 90 38.5% 137 34 99.7%
Cheviot Hills $1,925,000 14.6% 25 -7.4% 19 111.1% 35 38 97.7%
Crenshaw $477,500 2.0% 40 -21.6% 19 -13.6% 39 25 104.1%
Eagle Rock $750,000 11.6% 101 -1.9% 72 18.0% 123 17 102.7%
East LA $650,000 13.0% 629 -3.8% 496 16.4% 866 20 102.3%
Encino $940,000 20.5% 203 -11.0% 202 1.0% 270 38 98.7%
Fox Hills $471,000 8.3% 29 -21.6% 12 33.3% 32 13 102.4%
Glassell Park $712,500 12.1% 40 -28.6% 35 16.7% 53 19 103.4%
Greater Echo Park Elysian $795,000 16.9% 57 7.5% 57 9.6% 83 29 100.4%
Hancock Park $1,612,500 7.1% 26 62.5% 31 93.8% 33 21 99.0%
Highland Park $687,000 18.4% 103 -16.3% 61 19.6% 128 20 103.7%
Hollywood $689,000 -0.1% 89 -16.8% 88 20.6% 115 29 98.9%
Hollywood Hills West $875,000 -25.2% 119 -21.7% 174 23.4% 199 29 99.5%
Holmby Hills $870,000 18.1% 9 50.0% 9 12.5% 8 37 96.4%
Lake Balboa $535,000 11.5% 105 -16.0% 76 22.6% 137 34 100.7%
Malibu $2,195,000 17.1% 25 -10.7% 246 8.8% 45 75 93.7%
Marina del Rey $865,000 5.9% 103 10.8% 69 35.3% 117 23 100.3%
Mid-City $825,000 -2.2% 163 6.5% 135 3.9% 205 35 100.0%
Mount Washington $700,000 1.0% 29 -27.5% 36 89.5% 49 21 102.6%
North Hollywood $505,000 8.6% 159 -7.0% 125 31.6% 189 33 100.2%
Northwest San Pedro $509,250 9.8% 100 -7.4% 70 -11.4% 123 34 99.5%
Pacoima $397,500 13.6% 80 -9.1% 45 2.3% 106 20 99.7%
Panorama City $390,000 27.9% 79 8.2% 50 4.2% 103 30 100.8%
Pasadena $741,500 9.6% 180 -10.9% 458 28.3% 224 18 101.5%
Santa Monica $1,257,500 -9.5% 62 -27.1% 145 -5.8% 78 19 99.6%
Sherman Oaks $797,500 6.5% 274 -2.1% 268 33.3% 366 36 99.4%
Silver Lake $984,500 7.6% 79 16.2% 48 4.3% 112 19 104.3%
South LA $409,750 12.3% 976 -4.5% 862 -3.9% 1,307 32 100.5%
South Valley $581,000 8.2% 1,924 0.3% 1,658 24.6% 2,597 34 99.5%
Studio City $1,000,000 4.2% 159 -5.9% 177 29.2% 242 27 100.1%
Sun Valley $475,000 14.5% 91 11.0% 65 30.0% 107 22 100.4%
Sylmar $437,500 8.0% 170 -9.1% 131 32.3% 236 28 100.4%
Tarzana $675,000 37.8% 135 6.3% 150 10.3% 220 40 98.5%
Valley Village $844,948 13.4% 86 50.9% 42 61.5% 92 29 100.3%
Van Nuys $493,750 11.7% 104 19.5% 64 -3.0% 127 30 100.0%
Venice $1,500,000 -1.6% 149 21.1% 141 -2.1% 185 30 98.6%
Watts $285,000 6.3% 66 3.1% 67 -1.5% 90 38 99.2%
West Adams $590,000 19.2% 51 -3.8% 28 -12.5% 61 20 102.9%
West Long Beach $360,000 4.3% 33 -29.8% 44 29.4% 65 32 98.7%
West Los Angeles $1,245,000 11.7% 1,729 -6.7% 1,624 9.7% 2,310 22 100.2%
Westwood $927,500 13.8% 138 5.3% 114 -9.5% 167 29 99.3%
Woodland Hills $697,000 6.3% 282 4.8% 300 68.5% 446 35 98.7%
Los Angeles, CA $600,000 7.1% 2,664 -9.3% 7,252 12.3% 3,726 30 100.0%

See Redfin’s data center to find out what’s happening in other cities.

NOTE: Not all neighborhoods are listed, but totals for L.A. encompass entire city. Data is based on listing information and might not reflect all real estate activity in the market. Neighborhood-specific data is measured over the three months ended July 31. Inventory measures listings active as of July 31.

For more information, contact Redfin journalist services

Phone: 206-588-6863

Email: press@redfin.com

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Jeffery Marino

Jeffery writes about the L.A. real estate market for Redfin Real Time and works with journalists covering real estate throughout Southern California. He previously worked as an editor and researcher for a leading real estate publishing firm. Redfin is a full-service real estate brokerage that uses modern technology to make clients smarter and faster. For more information about working with a Redfin real estate agent to buy or sell a home, visit our "Why Redfin?," page.

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