Coldwell Banker: Hancock Park / Beverly Center / Miracle Mile Market Update
Where did the inventory of houses go? Like many areas throughout Los Angeles the number of houses and condos on the market is extremely low even for this time of the year. In Hancock Park the activity has slowed considerable from the third quarter or starting in August. In the last month the sales declined from a volume in 2013 of $59,000,000 to $40,000,000 and September from $33,000,000 in 2013 to $20,000,000 in 2014.
The Beverly Center / Miracle Mile has declined as well in October by about $4,000,000 and increased in September but declined in August. There appears to be a cooling trend which seems to be the result of a lack of houses on the market overall. The median price shows no real change as it fluctuations with the mix of properties sold. Overall the units for the year in both areas have declined, the dollar volume has risen over all and the median price has held steady.
Any new property that comes to the market and is priced within a buyer’s range sells in multiple offers very quickly. The offers are often not above the asking and the range in prices is considerable. The asking price has to attract the very savvy buyers or the investors. If the properly has been redone done it is an owner user and otherwise it is an investor. Our market has had as much as 35% investors making purchases in all price points and these houses will be back on the market. It was been said that a very maintained home but dated is a functional fixer in this current market. Either it is done or appeals to a developer who intends to resell the property.
We are looking forward to 2015 and a more predictable market for the buyers and sellers.
By: John Winther
