As we entered this unchartered territory in the first quarter of 2020, the real estate market reflected some unevenness. Results for this past quarter in Los Angeles County were location and market specific. Looking at various communities within the whole of the county we find these statistics:
- Properties on the market moved quicker in the more desirable Westside neighborhoods because of historically low mortgage rates and average sales prices declining.
- Strong sales in the Hills showed a 43% increase from last year. In fact, Beverley Hills had a 120% increase in activity over last year. It appears that buyers were taking advantage of a 6% decrease in average single-family home prices to $2.8M
- Some communities on the East Side saw average sales prices for single-family homes increase compared to the first quarter of last year, while days on the market decreased by 27% from last year’s first quarter. Pasadena and San Gabriel had sale price increases of 7 and 30 percent, respectively. In the La Cresenta//Glendale/ Montrose/Sparr Heights markets, condominium sales were extremely strong.
- Overall, Metro Los Angeles saw a strong 25% increase over last year’s sales activity. Downtown LA and Hollywood condominium sales showed a dramatic increase of 75% compared to last year’s first quarter and days on the market were down 16% for Downtown.
- South Bay’s home sales activity was mixed. Overall, they declined by 2% year-over-year, with the exceptions being Hermosa Beach with a 41% activity increase, Rancho Palos Verdes at 32% and Playa Vista at 75% increase. Home prices were relatively flat except for Playa Vista where the average sale price hit $2.7M, a 45% gain.
What this picture will look like for the 2nd Quarter of 2020 is anyone’s guess. If virtual tours and digital conferencing continue, we may be seeing some leveling out of the market, but not a significant decline.
If you are unable to qualify for a conventional home loan and are looking for financing during these stressful times, look no further than Sun Pacific Mortgage. Although we are physically located in Northern California, at least half of our clients come from Southern California. We successfully handle all our business remotely, either online or by phone. Give us a call at 707-523-2099 or send us your questions and/or scenarios through our website email forms. Let’s see if we can help ease some of your stress during this unprecedented time.