Inventory is up for Los Angeles’ market for single family homes, according to a Douglas Elliman report compiled by the Miller Samuel Real Estate Appraisers. But signed contracts dropped 25 percent in August in a year-over-year comparison.
This week’s Douglas Elliman report was the latest in a steady flow of recent studies and market anecdotes that point to fewer buyers in the Los Angeles County market and around the nation. The pace of signed contracts slowed mostly because of rising mortgage rates, said Jonathan Miller, the author of the August report.
The dip came across all price points, with the steepest decline, a drop of 41 percent, for houses priced above $5 million. There were 39 signed contracts for listings priced above $5 million in August 2022, compared with 47 signed contracts in August 2021.
The slightest decline was for homes priced $900,000 to $999,000. Signed contracts for homes in that price range–a few notches above the media price in L.A. County–declined 8.8 percent. There were 248 signed contracts for these homes in August 2022 compared to 272 signed contracts in August 2022.
Another reason for a decline in signed contracts, especially in luxury segments, could be the summer vacation season carrying through August, Miller said.
Signed contracts represent deals which are often closed months later.
New listings for single family homes increased 18 percent in Los Angeles County because signed contracts had declined, the report found.
The Douglas Elliman report shared a similar story for condos in Los Angeles County. New signed contracts declined 35 percent for condos. There was an uptick of about 1 percent for new listings for condos.
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