Los Angeles Real Estate Recovering?
The statistics for the 3rd quarter are out and there is some interesting news to report! I have attached two charts that compare SALES VOLUME and MEDIAN PRICE in Los Angeles compared to 3rd quarter of 2010.
In some areas sales volume has increased as much as +193% while other areas have cooled down by 53%. All areas averaged a +10.54% increase. See below to check out your specific area.
Median prices have increased in some areas as much as +34% and decreased as low as -20% (with the exception of Malibu Beach which dropped 60% – A beach home is now only $20 million now, yeah!) The average median price for all areas increased +1.17%. See chart below for more details.
What does all this mean? Well from my personal experience I can tell you that properties are selling if within the range that buyers feel is appropriate value. Sales volume increased in certain areas because prices dropped and buyers see value. Median prices are increasing because we have seen sustainable drops in some areas, and the market is correcting itself because the demand is there. Many people are taking advantage of the HISTORIC low rates and either moving up or buying investment properties. I have seen investors buying homes, fixing and flipping again. That is a good sign for recovery in the market.
I just sold an income property that was a RECORD BREAKING SALE. The highest selling Triplex in ALL OF METRO LA since 2007 (height of the market), and the highest selling Triplex in Hancock Park since 2006. Appraisers and Realtors are chomping at the bit to use this as a sales comparable It has helped many other sales in the area.
Have a great Thanksgiving Holiday!
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