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Los Angeles Real Estate Market Update for September 2015
The statistics and figures noted in this article were obtained through the MLS and AccuFlip.com, and are for Los Angeles single family residences.
The Los Angeles County real estate market continues to level off. There’s not much exciting news to report for the month of September. Median price and volume are down slightly. Even though these key statistics are down it really doesn’t mean much. They are not tanking, they’re just down a little. There are no economic indicators that are warning us of a true substantial dip in the market.
The median sales price for Los Angeles County SFR for September 2015 came in at $552,000. A decrease of 1.1% from August. Year over year prices are up 6.5%. Volume also dipped a little with 4040 sales down from August’s 4258 sales. Year over year sales are up 9.9%, which is a much more important statistic. Increased year over year volume is always a positive sign.
There are currently 10,883 Active listings, which is basically where we were at last year. Pending properties are up, 7,419 properties in escrow.
Key Ratios
The S.I. index is at 8.98 (median price divided by median household income), a good sign to be back under 9. An S.I. of 8.75 or less is ideal for sustainability and we may dip under that threshold again, by the end of the year. Keep in mind that the dip in prices that we will see between now and February are artificial. It happens every year and does not mean that the real estate market is collapsing. The ratio of Pending to Active properties is at 68%. This shows that demand is still high and buyers are in strong competition with each other.
Overall, the market is pretty boring, from a statistical standpoint. However in reality, the market is great! Prices continue to rise and we are somewhat maintaining sustainability. If you are investing in real estate, you can still make money and you can do it at a sustainable rate. Be sure to check the micro market that you are investing in. Los Angeles County is a huge market and individual zip codes will differ greatly from each other. Some markets are depreciating and others are VERY hot.
Questions or comments? Leave a message below or email me at [email protected]
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By Bret Pfeifer: Real Estate Broker and Real Estate InvestorThe statistics and figures noted in this article were obtained through the MLS and AccuFlip.com, and are for Los Angeles single family residences.
The Los Angeles County real estate market continues to level off. There’s not much exciting news to report for the month of September. Median price and volume are down slightly. Even though these key statistics are down it really doesn’t mean much. They are not tanking, they’re just down a little. There are no economic indicators that are warning us of a true substantial dip in the market.
The median sales price for Los Angeles County SFR for September 2015 came in at $552,000. A decrease of 1.1% from August. Year over year prices are up 6.5%. Volume also dipped a little with 4040 sales down from August’s 4258 sales. Year over year sales are up 9.9%, which is a much more important statistic. Increased year over year volume is always a positive sign.
There are currently 10,883 Active listings, which is basically where we were at last year. Pending properties are up, 7,419 properties in escrow.
Key Ratios
The S.I. index is at 8.98 (median price divided by median household income), a good sign to be back under 9. An S.I. of 8.75 or less is ideal for sustainability and we may dip under that threshold again, by the end of the year. Keep in mind that the dip in prices that we will see between now and February are artificial. It happens every year and does not mean that the real estate market is collapsing. The ratio of Pending to Active properties is at 68%. This shows that demand is still high and buyers are in strong competition with each other.
Overall, the market is pretty boring, from a statistical standpoint. However in reality, the market is great! Prices continue to rise and we are somewhat maintaining sustainability. If you are investing in real estate, you can still make money and you can do it at a sustainable rate. Be sure to check the micro market that you are investing in. Los Angeles County is a huge market and individual zip codes will differ greatly from each other. Some markets are depreciating and others are VERY hot.
Questions or comments? Leave a message below or email me at [email protected]