SoCal developers slash prices on new homes amid oversupply: Zillow

Largest inventory of unsold homes in 6 years

Los Angeles /
Jan.January 21, 2019 02:00 PM
(Credit: Pixabay)

Facing the largest inventory of unsold homes in six years, home builders in Southern California have started to slash their prices. The move was another example of what market pros are calling a slowdown in the greater housing market.

Property owners and developers cut prices on 25 percent of new homes in Los Angeles and Orange counties, and 28 percent of new homes in Riverside and San Bernardino counties, according to Zillow’s fourth quarter market report, cited by the L.A. Daily News.

At the start of 2018, the price cuts amounted to 19 percent and 27 percent of new homes in those regions, respectively. A recent report found a similar slowdown in new home sales in the Southern California area.

The cuts mirror a nationwide trend, as 25.1 percent of new homes saw reduced prices at the end of the year, up from 19.2 percent at the start of the 2018.

Housing tracker MetroStudy found at the end of the third quarter, 3,401 new homes were unsold in Southern California — up 14 percent in 12 months. That was the highest inventory level since 2012.

As a result, Southern California builders made some of the deepest price cuts seen nationwide, and the National Association of Home Builders confidence index for the region started this year at 70, down from 83 last year. [LADN]Gregory Cornfield


Related Articles

arrow_forward_ios
Environmental group drops suit over 6,700-acre Tejon Ranch project
Environmental group drops suit over 6,700-acre Tejon Ranch project
Environmental group drops suit over 6,700-acre Tejon Ranch project
Poll: Majority of LA County residents support duplex law
Poll: Majority of LA County residents support duplex law
Poll: Majority of LA County residents support duplex law
Sam Nazarian (Getty, iStock)
Coachella resort fraudster duped Sam Nazarian
Coachella resort fraudster duped Sam Nazarian
 A rendering of 11611 Ventura Boulevard (Urbal Architecture)
145-unit assisted living facility set for Studio City
145-unit assisted living facility set for Studio City
Red Oak Investments' Alex Wong and A-1 Trailer Park (Google Maps, Red Oak)
Presto on PCH: apartment developer plans to make trailer park disappear
Presto on PCH: apartment developer plans to make trailer park disappear
Apple reveals 369,000 sf slice of Westside plan
Apple reveals 369,000 sf slice of Westside plan
Apple reveals 369,000 sf slice of Westside plan
The portion of land with renderings of proposed development (LoopNet)
6 percent of Bel Air on discount
6 percent of Bel Air on discount
Madison Realty Capital extends LA push with $91M loan
Madison Realty Capital extends LA push with $91M loan
Madison Realty Capital extends LA push with $91M loan
arrow_forward_ios

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

Loading...