The Real Deal Los Angeles

Are Downtown condo prices beginning to stabilize?

Market rebounded in February, new report shows

March 15, 2016 01:00PM
By Katherine Clarke

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Metropolis in Downtown L.A.

Metropolis in Downtown L.A.

Downtown Los Angeles condominium prices rebounded in February after posting steep declines in January, a new report shows.

The price of an apartment in the area actually increased by 2 percent last month to $717 per square foot, compared to $701 per square foot in January, according to a pricing index released Tuesday by the Mark Company, a marketing firm.

However, that’s still 10 percent lower than this time last year.

“The recovery in pricing in February may indicate a resiliency in the market as the traditional selling season commences,” said Erin Kennelly, senior director of research at Mark.

The resale market moved in the opposite direction in February, with the average resale price per square foot decreasing by 5 percent to $584 per square foot, compared to $615 the previous month, but it was still 7 percent higher year-over-year.

Kennelly attributed the price dip in resales to a rise in inventory and only a small number of sales. Only 14 resale condominiums were placed into contract last month, representing a decrease of 53 percent compared to the same month one year ago, the report shows.