LA’s home prices are soaring and homes are flying off the market: report

New data from Pacific Union shows the continued lack of inventory is driving the price increase

TRD LOS ANGELES /
Apr.April 25, 2018 05:00 PM
Single family home in LA (Credit: LHA)

The news isn’t good for Los Angeles home hunters. New data shows that prices keep going up and homes keep flying off the market.

The report from Pacific Union International found that the median price of a home price across the brokerage’s markets stood at $910,000 in March, about 14 percent higher than the same period last year. The data spans homes from the San Gabriel Valley to the Westside and San Fernando Valley.

The rise in prices is largely because of a lack of supply, according to Pacific Union’s chief economist, Selma Hepp.

“The last time we saw this level was in 2013, one of the strongest years for prices in L.A., and the inventory is about half the level it was then,” Hepp said.

Competition for homes is tight across the city, the data found. Homes are selling in around 30 days, almost one week less than they did last year. And about 45 percent of homes sold above the asking price, up from 38 percent a year ago.

Affordable homes in particular are scarce. Sales of homes below $1 million dropped 17 percent year-over-year, because “ inventory is rapidly disappearing,” Hepp said. By contrast, sales of homes in the next highest bracket — between $2 million and $3 million — were up 20 percent. They were up 28 percent for homes listed above $3 million.

A shortage of affordable housing has gripped L.A. for years, leading to recent calls in the state legislature for an overhaul. Adocates of a hotly-debated bill, SB 827, said it would have greatly increased the city’s capacity for housing by overriding local laws to allow dense multifamily development near transit. That bill died in committee last week, with opponents saying it would encourage luxury development and take power local lawmakers.


Related Articles

arrow_forward_ios
LA home prices up 8.5% YOY amid plummeting inventory

LA home prices up 8.5% YOY amid plummeting inventory

LA home prices up 8.5% YOY amid plummeting inventory
Many are indeed leaving LA

Leaving LA: Rising home prices are pushing residents out: report

Leaving LA: Rising home prices are pushing residents out: report
Malibu Real Estate Investments principals Bedros Oruncakiel and Kirkor Suri

Malibu spec mansion lists amid softening luxury market

Malibu spec mansion lists amid softening luxury market
Chandler Parsons and his property on Stone Canyon Road (Credit: Getty Images)

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion
CoreLogic's Andrew LePage and Orange County (Credit: Wikipedia)

SoCal housing market shows signs of life, with a caveat: report

SoCal housing market shows signs of life, with a caveat: report
Bridge Housing CEO Cynthia Parker and a rendering of the view from Walnut and Anaheim (Credit: SVA Architects)

Fully affordable complex set to rise in vacant Long Beach lot

Fully affordable complex set to rise in vacant Long Beach lot
Tracy Tutor and her Brentwood home

Tracy Tutor of “Million Dollar Listing ” asking a lot more for Brentwood home

Tracy Tutor of “Million Dollar Listing ” asking a lot more for Brentwood home
Anton Lessine and 321 South Bristol Avenue, and Behati Prinsloo and Adam Levine with their home (Credit: Getty Images and Zillow)

This week in celeb real estate: Adam Levine unloads $45M home, a Hollywood film producer sells in Brentwood…and more

This week in celeb real estate: Adam Levine unloads $45M home, a Hollywood film producer sells in Brentwood…and more
arrow_forward_ios

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

Loading...