Local Housing Report: Summary: It’s The Right Time

THE Right Time: With low interest rates and a surge in demand, it is a good time for both buyers and sellers to make a move.

• The active listing inventory increased by 14 homes in the past two weeks, nearly unchanged, and now totals 12,889. Last year, there were 10,623 homes on the market, 2,266 fewer than today. There are 21% more homes than last year.

• Demand, the number of pending sales over the prior month, increased in the past two-weeks by 204 pending sales and now totals 5,530, its lowest level for this time of the year since 2014. Last year, there were 5,629 pending sales, 6% more than today.

• The average list price for all of Los Angeles County remained at $1.8 million over the past two-weeks. This number is high due to the mix of homes in the luxury ranges that sit on the market and do not move as quickly as the lower end.

• For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 50 days. This range represents 47% of the active inventory and 66% of demand.

• For homes priced between $750,000 and $1 million, the expected market time is 71 days, a slight Seller’s Market. This range represents 15% of the active inventory and 15% of demand.

• For homes priced between $1 million to $1.5 million, the expected market time is 91 days, a Balanced Market.

• For luxury homes priced between $1.5 million and $2 million, in the past two weeks, the expected market time increased from 114 to 116 days. For homes priced between $2 million and $3 million, the expected market time decreased from 162 to 150 days. For luxury homes priced between $3 million and $4 million, the expected market time decreased from 267 to 238 days. For luxury homes priced above $4 million, the expected market time decreased from 523 to 480 days.

• The luxury end, all homes above $1.5 million, accounts for 26% of the inventory and only 9% of demand.

• Distressed homes, both short sales and foreclosures combined, made up only 1.3% of all listings and 2.3% of demand. There are only 74 foreclosures and 95 short sales available to purchase today in all of Los Angeles County, 169 total distressed homes on the active market, up 2 in the past two-weeks. Last year there were 146 total distressed homes on the market, 14% fewer than today.

• There were 4,877 closed residential resales in March, 16% fewer than March 2018’s 5,773 closed sales. March marked a 39% increase from February 2019. The sales to list price ratio was 98.5% for all of Los Angeles County. Foreclosures accounted for just 0.9% of all closed sales, and short sales accounted for 0.9%. That means that 98.2% of all sales were good ol’ fashioned sellers with equity.