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Los Angeles Real Estate Market Report for September

Los Angeles Real Estate Market Report for September

The Los Angeles real estate market continues to be somewhat competitive even in these days of pandemic partial shutdowns.  Moving to the Los Angeles area is more attractive because of the work-from-home opportunities being afforded many employees.  Up until now residents could expect to spend a lot of time in their cars given that LA was named the 5th worst city for traffic in the United States.  Now that many workers can settle into a home office, commuting becomes less of a problem.

According to Realtor.com here are some Los Angeles, CA market statistics for the end of September 2020:

  • Median List Price:  $950,000 (up 5.7% over 2019)
  • Median Price per Sq. Ft.: $552.
  • Median Sales Price:  $850,000
  • Sales to List Price:  100%
  • Average Days on Market:  58

When you look at some of the more desirable neighborhoods in LA County a different picture emerges:

Brentwood:

  • Median Sales Price:  $2,600,000
  • 306 homes for sale

Westwood:

  • Median Sales Price:  $1,400,000
  • 258 homes for sale

Sherman Oaks:

  • Median Sales Price:  $895,000 (12% down from 2019)

Silver Lake:

  • Median Sales Price:  $1,210,000 (up 41.8% from 2019)

(Note to explain the extraordinary uptick in price: This is a neighborhood that saw an influx of Millennials recently, although it has been a cultural destination for at least a decade.  New hotspots and restaurants have made this especially enticing to a new demographic.)

If you are looking to purchase or refinance in the LA area, but find that you fall short of qualifying for the more restrictive Covid-19 mortgage regulations, give Sun Pacific Mortgage a call at 707-523-2099.  Although we are located in Northern California, we are licensed for all of California and lately have been helping many Southern California clients with their hard money loans.

Los Angeles First Quarter Report

Los Angeles First Quarter Report

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.

Los Angeles 4th Quarter Real Estate Market Report

Los Angeles 4th Quarter Real Estate Market Report

Recently Compass California Real Estate issued a 4th quarter report on the sales activity in the larger Los Angeles area.  The report heralds a favorable start to 2020 with overall sales increasing more than 7%, although the average home sales prices varied from market to market. Here is a brief summary of a few areas:

  • South Bay:  Healthy increase in demand and activity over last year.
  • San Fernando Valley:  varied widely from one area to the next, with both increases and sharp declines.
  • Westside communities: Small increase of 2%.  Single family residences in Westwood and Century City had price increases of 15% and condominiums increased 17%. Culver City, a popular area for Millennials, enjoyed a 20% price increase from last year for condos and single-family homes rose 19%
  • Coastal communities:  Activity was mixed with only 2% increase in sales compared to last year.  Sales prices rose 12%, however.
  • San Fernando Valley:  The West saw an 8% increase in activity driven by strong condo sales.  The overall sales price slowed to a 5% increase over last year. The East market for single family homes was strong, but further east (e.g. Glendale, Burbank) sales activity fell because of inventory shortages.
  • South Bay:  Home sales activity was energetic, up 17% from last year.  Among the standouts was Playa Del Rey (233%) and Playa Vista (75%) thanks to more companies opening shop in “Silicon Beach”.

What can we take from this recap of the last quarter?  It appears that hopeful buyers have returned to the market especially where prices have softened.  Homebuyers should take note that current housing conditions remain favorable as we launch into 2020.

Get out there and sell your property if you’ve considered doing this; Get out there and by your new home or investment property – don’t wait, the time is now.

Jump Start Your Real Estate Project With Hard Money Loan

If you need funds to purchase a property to rehab, buy more investment properties, or buy your own home, hard money lending may be the solution for you.

Hard money lenders primarily look at assets instead of credit scores.  In most cases, if you have at least 35% to put as a down payment or use from existing equity, they will provide you with the capital to bridge the gap in a short amount of time.  Even though hard money carries a higher interest rate than conventional loans, they can offer the springboard you need to jump into the real estate investment world.

Other benefits of hard money lending include:

Quick Approval.   It is possible to get a loan funded in a matter of days as opposed to months.  It some cases this can be a make or break factor.  

Easier Qualification.  Credit scores are not the stumbling block they can be with conventional lending.  You are more than a number with private lenders.

Hard Money Same as Cash.  Many sellers are persuaded to accept an offer that is based on hard money, because It is considered a cash offer, over a traditional loan.
We are here to help you get started in California, so call us with any questions or investment scenarios at 707-523-2099.