Los Angeles Quarterly Market Insights Report (Micro): Q2 2020
July 15, 2020 | Source: Compass California Real Estate Blog
As we continue to work through the challenges and impact of Covid-19, we are pleased to bring you the Compass 2020 Q2 Real Estate Market Report.
Sales activity and average sale price across LA Country reveal how Stay-at-Home orders disrupted the second- quarter market. Buyers pulled back while sellers continued to sit on the sidelines waiting for increased market activity. Condominium sales were sharply impacted in most areas as concerns about sharing public spaces, including elevators and swimming pools, escalated.
As uncertainty continued, overall sales activity fell 43 percent compared to last year in Los Angeles’ second quarter. That number is consistent around the area. The San Fernando Valley saw a 44 percent sales drop. Sales in the Eastside/San Gabriel Valley fell 42 percent. Similar overall sales numbers tracked on the Westside with a 44 percent decline.
Down in the South Bay, the sales activity decline was only slightly better at 39 percent compared to the second quarter of 2019.
Despite sales activity declines, Hermosa Beach, Rolling Hills Estates, Toluca Lake, Beverly Hills, Pacific Palisades, and Malibu saw double-digit increases in average single-family sale prices. This reflects the national trend in the current Covid-19 environment of buyers wanting single-family homes.
Days on market decreased significantly in many communities. This solid indicator shows that well-priced move-in ready properties sell quickly. This holds true when inventory is held off the market by reluctant sellers. Anticipate that additional inventory constraints due to Covid-19 will continue.
As trusted advisors, Compass real estate professionals have deep market knowledge to guide both existing and potential clients moving forward into the second half of 2020.