February opens to consistent headlines on the national and local level proclaiming a “cooling off” of residential activity. New York City has actually posted sales price declines, although very slight, in the 4
th quarter of 2018. Los Angeles market reports are completely contradictory depending on the price range of the property. The Entry level up to Mid-Luxury level residential markets are still super-hot. Multiple offers are still the norm for a well-priced Entry home. Similar Seller strength is true for LA’s “Mid-Luxury” which is $3M up to $6M. Above $6M, the storyline begins to reverse in relation to higher price points.
$10-20M home sales in 2018 : 62 Available homes now : 64 Result :
1 year supply
$20-40M home sales in 2018 : 14 Available homes now : 29 Result :
2.1 years supply
And just for fun –
$40+M home sales in 2018: 2 Available homes now: 17. Result:
8.5 years supply
And, high end luxury construction continues at full steam bringing additional homes to market this year and in 2020.
I say this, the
Forecast has become Reality. It all depends on the
price level of the property. We do have a strong Seller’s market below $6M. It has become a Buyer’s market at $20M and higher.
My cousin David Andrews is the Center for the New England Patriots. This Sunday, our Los Angeles Rams play the Patriots in the Super Bowl. Don’t tell my family, but I must pull for the Rams this year (David has won other Super Bowls), because LA will greatly benefit. Our space-age Stadium is gorgeous and a game-changer in our city format. The Olympics are not that far off and LA will be resplendent as the great
World City it has become. I’m proud to live in LA!
Next month, I’ll tell you why your Pool should be black. Also, Happy Valentine’s Day!