LA’s slipping condo market reflects wider trends in home sales across SoCal

TRD LOS ANGELES /
Nov.November 13, 2018 02:24 PM
TK (Credit: iStock)

Condominium sales slowed by double-digits in October, reflecting a wider sales slowdown across Southern California.

Condo sales dipped 19 percent in October in the area encompassing L.A.’s Westside, Hollywood, Tri-Cities, Downtown, and Koreatown, according to a new Polaris Pacific report. The dip topped double digits in all those areas other than Koreatown, where sales were up by nearly 55 percent over October 2017.

Koreatown was also the only market of the five to see a noticeable drop in median price per square foot, at 6.3 percent.

There were 1,093 closings in October across all five markets. While sales were off, the median price rose 7.3 percent to $804,000.

The Westside’s $975,000 median price was the highest of all the markets, while the $590,500 in the Tri-Cities was the lowest. The Tri-Cities — Pasadena, Glendale and Burbank — saw the most significant dip in sales and the most significant increase in median price per square foot at 38.1 percent and 18.8 percent, respectively.

In San Diego, the trend repeated, with closings falling 13.3 percent in October, while sales rose 6.6 percent.

The figures reflect a wider trend across Los Angeles and Southern California. A combination of high pricing and growing interest rates have slowed sales. Southern California saw its slowest September in a decade for existing home and condo sales this year.

Months of inventory shot up 68.3 percent to 3.8 months, but that snapshot is part of a wider trend. Inventory dropped during 2017 before steadily increasing this year to an annual level roughly consistent with 2014-2016.

The Polaris Pacific report also studied pricing across building types. Prices at buildings four stories or less increased 13.7 percent year-over-year to $770 per square foot. They tipped by about a percentage point at mid-rise buildings to $734 per square foot and increased at buildings above 13 stories by 5.2 percent to $895 per square foot.


Related Articles

arrow_forward_ios
A rendering of the project and Douglas Bystry, President and CEO of Clearinghouse

Koreatown resi complex marks firm’s entry into Opportunity Zones

L.A. City Attorney Mike Feuer and a rendering of the Koreatown project (Credit: Getty Images)

LA sues Koreatown developer Michael Hakim

L.A. Councilman Herb Wesson and an empty lot Rosewood Corp. is looking to build on (Credit: Getty Images and Google Maps)

Koreatown tower developer gave city council president’s son a deal on rent: report

Michael Sorochinsky, Steven Fifield, Mike Parrell, and Next on Sixth

Big deal: Sam Zell’s Equity Residential buys 398-unit Koreatown resi complex

Top to bottom: a rendering of the project and a photo of the site at 3170 West Olympic Boulevard (Credit: Google Maps)

Koreatown hotelier sells shovel-ready development site entitled for 252 units

From left: Comerica Bank CEO Curtis Farmer, Jamie Lee and 2842 West James Wood Boulevard (Credit: LinkedIn and Google Maps)

Jamison nabs construction loan on another big resi project

From left: Director of Realty Ryan Limb and Newport Partners founder Monique Hastings with the property (Credit: Google Maps)

This developer is going all in on LA affordable housing

Simon Kerendian's Koreatown development site

In Koreatown, residential project proposals keep piling up

arrow_forward_ios