Heated Venice resi market anticipates cooldown

Los Angeles /
Aug.August 16, 2016 05:00 PM

During the past year, the average single-family home price in Venice rose 9.1 percent and the average price per square foot shot up 16.1 percent, according to a new report by Halton Pardee + Partners.

“Venice has been hot commodity the last four or five years,” said Louis Leal of Halton Pardee. “Prices have increased every year, but in Venice’s 3.5 square miles, there is still a high concentration of 40,000-plus people who live here in some 7,000 dwellings.”

Up to 40 percent of those dwellings, Leal said, are multi-unit properties being scarfed up by investors. As a result, most individual buyers are priced out of the multi-unit mini-market rife with the charm of 1940s and ‘50s subway tiles and pastel motifs.

At least 25 percent of Venice transactions in the past 12 months were comprised of income properties. During the second quarter, an 11-bedroom, nine-bathroom income property on 28th Avenue sold for $4.5 million. While this might seem reasonable for units promising a large return — a two-bedroom apartments rent as high as $4,000 or $5,000 a month in Venice — the high price points held true for smaller investments, too. A two-bedroom, 2.5-bath, 1,944-square-foot property at 1782 Washington Way near pricey Abbott Kinney sold for $1.9 million in May.

Venice’s condo market, while a much smaller share, remains active. Second-quarter sales averaged $1.4 million per property.

Overall, residential sales are netting $1,242 per square foot, a number skewed by developers buying aging housing stock, which they promptly tear down to make way for new builds.

In single family homes, the real news is a widening inventory, Leal said. In the past 12 months, the number of homes for sale has increased from a rolling 49 units to 63 units, signaling an almost 29 percent rise, Halton Pardee reports.

“In the last few months, we’ve seen newer inventory coming to the end of a build cycle,” Leal said. “We now have 25 houses with an over $3 million asking prices in Venice.”

The inventory, price point and an expected leveling of the market is expected to slow sales time.

“People are sitting on their prices and not coming down,” Leal said. “Things are staying on market longer, about 60 days, which is long—and a telltale sign of a leveling off. People are not quick to make a deal anymore. They are waiting for right buyer.”

Languid or not, sales of single-family units are still on pace to exceed last year, according to Halton Pardee. The total single-family units sold year-to-date is 101. In 2015, a total of 199 units were sold.


Related Articles

arrow_forward_ios
Lyon Living's Frank Suryan Jr. and The Herald complex at 150 East Crowther Avenue (Lyon Living, Herald Apartments)
Lyon Living set new benchmark on multifamily pricing with sale in north OC
Lyon Living set new benchmark on multifamily pricing with sale in north OC
Irvine's Donald Bren and Douglas Emmett's Jordan Kaplan with 1221 Ocean Avenue (Irvine Company, UCLA Anderson school, 1221 Ocean Avenue)
Bren’s Irvine Co. in record territory at $2.7M per unit for Santa Monica apartments
Bren’s Irvine Co. in record territory at $2.7M per unit for Santa Monica apartments
Wood Partners' Joseph Keough with Foothill Boulevard (Wood Partners, Ontario Daily Bulletin. iStock)
260-unit apartment complex gets OK on Route 66
260-unit apartment complex gets OK on Route 66
6909-6923 North Reseda Boulevard (Google Maps)
Developer plans five-story apartment building in Reseda
Developer plans five-story apartment building in Reseda
14606-14612 West Sylvan Street (Google Maps)
Developer plans five-story apartment in Van Nuys
Developer plans five-story apartment in Van Nuys
Igor Olenicoff with Atlantis (Atlantis, iStock)
Olen Properties boss Olenicoff sues Atlantis, Brookfield over pandemic-related resort charges
Olen Properties boss Olenicoff sues Atlantis, Brookfield over pandemic-related resort charges
A rendering of Brookfield's 60-story residential tower, entitled "Beaudry," along with a photo of its namesake, Prudent Beaudry, a popular mayor of Los Angeles from the 19th century (Brookfield Properties)
Brookfield calls DTLA tower Beaudry
Brookfield calls DTLA tower Beaudry
Castlewood Park (Marcusmillichap, iStock)
Ask on OC apartment complex points to continued heat
Ask on OC apartment complex points to continued heat
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...