Median Sale up 18% in Los Angeles Neighborhoods Since January 2009 - Sales Velocity Increasing - Market in Strong Recovery
We periodically like to take a snapshot of the home market and to see how sales are trending in the Beverly Center - Miracle Mile, Hancock Park - Wilshire, Hollywood Hills East, Los Feliz, Silver Lake - Echo Park, Sunset Strip - Hollywood Hills West and West Hollywood neighborhoods.
The charts above and below focus on the percentage of houses in contract, which in our mind is a barometer for sales velocity -- the degree to which available properties are being purchased.
In the over-$1 million sector (above), we can see a defined low in approximately January 2009, during the worst throes of the financial crisis. Since then, the percentage of homes in contract has increased consistently, experiencing a defined bump in March 2010 when more than 12% of homes were in contract. Overall, the over-$1 million market has been on the slow upswing for over a year.
The under-$1 million market shows a similar trend. Sales reached a low point during the winter of 2008 - 2009 and have been increasing steadily since that time. These sales velocity charts tell a story that parallels that of the economy in general: month by month, since the financial maelstrom took its toll, the local housing market has been in recovery.
Pricing trends mirror those of sales velocity. The median sale price in these areas reached a low of around $880,000 during January 2009. Since then, the median sales price has been increasing steadily, attaining $1,040,000 in March 2010. This amounts to an 18% increase in median price in just over a year.
The data for this segment of Los Angeles fail to support the voices of doom about housing. The median sale price in a big chunk of LA is over $1 million and rising, sales velocity is increasing, and the oft-repeated comment that LA is a very expensive place to live is becoming more and more true each day.