We are excited to announce the release of the Compass Q2 2019 Los Angeles Quarterly Market Insights Report (Micro). This report highlights the prevailing trends shaping the market for each neighborhood. The report is now live and ready to share with your clients and sphere. Click here to view the full write-up.
Buyers remained reluctant in the second quarter despite moderation in home price growth and lower mortgage interest rates, both of which contributed to overall lower mortgage payments compared to last year. As a result, the overall number of home sales declined about 4 percent compared to the second quarter of 2018.
Nevertheless, buyers on the east side of Los Angeles remained active, looking for homes in more affordably priced areas such as the Eastside, DTLA, East Valley, and Eastern Communities, where they believed to be finding deals. Greater Beverly Hills area also rebounded from sluggish first quarter. Other higher-priced communities continued to see lower sales compared to last year, especially in areas with a higher presence of homes priced above $3 million, as those sales declined 23 percent compared to last year. Lower priced sales saw smaller declines compared to last year.
Buyers continued to take longer to make offers, extending the number of days on the market. A home was on the market for an average of 44 days, which is about 7 days longer than last year. And while more affordable communities continued to see solid sales, they saw relatively larger increases in days on the market.
After a challenging first quarter for sellers, fewer price reductions were seen in the second quarter. As a result, home prices maintained relatively steady and generally flat compared to the same period last year, though some competitively priced areas continued to see price growth during the second quarter, especially in northeast areas surrounding Downtown and in central Los Angeles communities.
Overall, the quarter ended with solid buyer demand suggesting the momentum will continue through the remainder of the year, and may even pick up if mortgage interest rates push lower as a result of the Federal Reserve’s change in stance.