The Virus, National Protests, and Job Numbers
Since our last update during the first week in April, a lot of happened across the country, economy and LA Westside real estate market. Within the last three weeks, the US officially topped 100,000 deaths due to Coronavirus, saw outraged people pour into the streets in protesting, vandalizing, and looting over the killing of an unarmed black man, George Floyd, and to the surprise of the entire country, added 2.5 million jobs in the month of May, and saw a real estate market that had been harnessed by Covid-19 and a nationwide shelter in place, steadily show signs of gaining momentum. With the new phrase “Summer is the New Spring” being coined to represent the current market, let’s look at what the month of May reveal about what to expect in the months to come in the Westside markets of Santa Monica, Palms/Mar Vista, Culver City, and West LA.
Homes for Sale
In Santa Monica, we see the numbers of new listings in the month of May dip by 4% in going from 101 in 2019 to 97 in 2020. New listings in Palms/Mar Vista went from 62 in May of 2019 to 68 in May of 2020, a 9.7% increase. Culver City saw a 20.3% drop in going from 59 to 47, while the number of new listings in West LA in May remained unchanged in staying at 26 for both years. To see the May 2019-2020 year over year data, click here.
The May number of homes sold clearly shows the effects of Covid-19 and the shelter in place order. Santa Monica saw a 30% drop in year over year closings in going from 10 in 2019 to 7 in 2020 while Palms/Mar Vista saw and even more dramatic drop in going from 27 closed sales in 2019 to 12 in 2020, a 55.6% decrease. Culver City saw the biggest drop of the four in going from 31 closed sales in 2019 to only 8 in 2020, a whopping 74.2%. West LA again was pretty consistent year over year in having 5 closed sales in 2019 and 4 sales in 2020, a 20% decrease. To see the May 2019-2020 year over year data, click here.
Days on Market
Days on market, which is an indicator of buyer demand, varied in the four areas. In Santa Monica, there was a 19% increase in days on market going from 42 days in 2019 to 50 days in 2020. In Palms/Mar Vista, days on market went from 32 in 2029 to 26 in 2020, an 18.8% drop. Culver City saw a 5.7% decrease in going from 35 days on market in 2029 to 33 in 2020. Days on market in West LA were relatively unchanged in going from 37 in 2019 to 38 in 2020, a 2.7% decrease. To see the May 2019-2020 year over year data, click here.
Month’s Supply of Inventory
In defining real estate markets, a balanced market is 6 months of inventory. Anything less is considered a seller’s market and anything more is considered a buyer’s market. The year over year numbers show us Santa Monica moved into a buyers’ market in the month of May in having 7.2 months of inventory in 2020 versus 5.7 months in 2019, a 26.3% increase. The numbers in Palms/Mar Vista increased year over year in remaining a seller’s market, going from 3 months of inventory in 2019 to 4.4 months in 2020, a 46.7% increase. Culver City saw a 25% increase going from a 2.4 month’s supply in 2019 to 3 months in 2020, which is still very much in a seller’s market. West LA’s numbers which remained in seller market territory, were up modestly going from 4.1 month’s supply in 2019 to 4.5 month’s supply, a 9.8% increase. To see the May 2019-2020 year over year data, click here.
Average $ Per Sq. Ft
The year over year numbers for average $/sq. ft were mixed across the four key areas. Santa Monica saw a 6.8% decrease in going from $1,332/sq. ft. in 2019 to $1,232/sq. ft. in 2020. Palms/Mar Vista went from $894/sq. ft. in 2019 to $930 sq. ft., a modest 4% increase. The $/sq. ft. in Culver City was down ever so slightly in going from $894/sq. ft. in 2019 to $887/sq. ft., a 0.8% decrease. West LA saw the largest increase of the four going from $846/sq. ft in 2019 to $893/sq. ft., a 0.8% increase. To see the May 2019-2020 year over year data, click here.
The early numbers for June are showing the LA Westside market is rebounding from the Covid-19 effect. The amount of new inventory coming online and pending sales have both been trending upwards over the last several weeks. With pending sales being an indicator of existing market health, the numbers would suggest the summer market will be an active one on the LA Westside fueled by record low interests, which have been below 3%, depending on the borrower and loan scenario. With many of the top financial institutions forecasting an economic rebound in Q3 & Q4 of 2020, the housing market is poised to remain stable through the end of the year.
If you’re looking to sell your LA Westside home and yet, concerned about the potential risks, don’t worry, we have buyers and we’ll sell it safely too. Virtual consultations, 360° tours, and virtual showings – no person-to-person contact. Call or text me. I’m available to chat with you for an ideal asking price or to get you an instant offer now to skip the showings. If you’re looking to buy, the same guidelines apply. Your safety is our #1 priority.
Wishing you continued safety and health.