If there’s a dip in the L.A. luxury market, the numbers have yet to reflect it.
For the fourth consecutive quarter, the median price for a home in the greater Los Angeles area has set an all-time record, according to a new report by brokerage Douglas Elliman.
The median price hit $1.04 million in the first quarter of 2016, a 17.6 percent year-over-year jump and a 7.8 percent increase from the previous quarter, the report shows.
The increase was driven at least in part by a rise in prices for luxury homes in areas such as Beverly Hills. The median price for a luxury single-family property – defined as the top 10 percent of properties sold by price – rose by 20.1 percent over the past year, to $5.91 million. That’s despite a slight dip in the second half of 2015.
In the Beverly Hills Post Office area, the median price for a single-family home went up by a whopping 41 percent in just one year, to $2.45 million, based on 25 closed sales last quarter.
Meanwhile, a slight 2.7 percent yearly uptick in the number of active listings on the market did little to slow down the pace of sales. The average number of days a listing sat on the market decreased to just 65, down from 71 this time last year.
“The absorption issue is pretty important,” said Stephen Kotler, chief revenue officer at Elliman. “Supply is really at a minimum.”
Average listing discounts were also down, from 2.7 percent to 2.4 percent.
Kotler said rumblings of a downturn in the market can be largely attributed to slashes in the price of “overpriced” properties. In reality, “a lot of things are going for ask or even above ask,” he said.