As we mark one year since the pandemic began there is much hope for 2021. We are pleased to bring you the Compass Q1 2021 Los Angeles Market Insights Report. First quarter sales activity was record-breaking for much of Los Angeles. Economics 101 was evident as demand far outpaced supply. Sellers of remodeled and updated homes in desirable locations were inundated with multiple offers often far above asking prices. All cash offers with inspections and various contingencies waived became common. Compass professionals remained ready to advise their clients resulting in smooth and seamless transactions.
Buyers moved fast around Los Angeles in this first quarter. In Rancho Palos Verdes, days on market for single-family homes decreased by 45 percent while sales activity increased by 25 percent. In the West Valley, single-family homes in Woodland Hills saw a 57 percent increase in home sales. Home prices followed suit rising 21 percent to $1.3 million.
Coastal communities continued to be in demand. Overall activity rose 56 percent while home prices saw an 18 percent increase to $2.4 million.
Despite the inherent challenges of Malibu living, year-over-year sales activity for single-family homes rose 95 percent pushing home prices up 27 percent to $3.5 million. Moving to the East San Gabriel Valley was once considered “affordable,” meanwhile the average home price reached $963,852. As we move into spring and vaccine rates increase economists forecast more sellers entering the market to meet buyer demand in the Los Angeles area.