In the most expensive corners of Los Angeles, the rising tide of real estate prices shows little sign of subsiding.
The median price for a luxury residential property in the Greater Los Angeles area — defined as the top 10 percent of all sales — rose by 16.9 percent year-over-year in the first quarter, according to a new report by brokerage Douglas Elliman. Buyers paid $9.7 million for luxury home, up from $8.3 million in the same period last year.
Luxury homes sat on the market for an average of 112 days in the first quarter, up from 96 days last year. Inventory was up 5.4 percent.
“Of all the markets I cover, its sort of a tie between Brooklyn and L.A. for the market that’s firing on all cylinders,” said Jonathan Miller, the appraiser who prepared the report for Elliman. “The market has become known for the high-end, but the balance of the market is performing well too.”
Miller noted that 32.9 percent of high-end properties sold as pocket listings in the first quarter, meaning that the top tier of the market may be performing even better than the headlines show.
The overall market rose by 5.9 percent in terms of median prices, the report shows. Buyers paid $1.45 million for a home in the region, up from $1.37 million last year. Overall inventory was down by 0.2 percent, while average days on the market dropped by 4.3 percent to just 67.
“It’s not a blistering pace but it’s fairly fast,” Miller said.