No Sports, George Floyd, and Social Equality
We are officially half-way through the year, and 2020 continues to outdo itself. Just when we thought the death of Kobe Bryant and arrival of Coronavirus would be more than enough for any 12-month period, over the last three months we have seen professional sports disappear, the death of George Floyd, and a global mandate for social and racial justice. With the statewide shelter in place being implemented in late March and all non-essential businesses begin forced to close, both the economy and real estate market came to a screeching halt.
Over the last sixty days though, with the reopening of many businesses and people attempting to resume more normal daily activities, the LA market has come roaring back as we are in full swing of the “Spring is the new Summer” market. In looking at the Ladera Heights Market Update Q2 2020, there were 3 homes that came onto the market and 7 homes that closed escrow. Here are the year over year numbers:
Year Over Data from 2019 to 2020
Ladera Heights Market Update for Q2 2020
In comparing the year over year numbers, we see a few dramatic changes. The first being average sales price which was down 9% from last year in going from $1422,714 in 2019 to $1,294,286 in 2020. The second is the drop in the number of homes sold, which reflect the impact of the statewide shutdown/shelter in place. Here we see closed sales in the second quarter went from 11 in 2019 to 7 in 2020, a whopping 36% decrease.
In looking at List Price $/SqFt and Sold Price $/SqFt, we see one was up slightly while the other was down a bit. List Price $/SqFt went from $530.51/SqFt in 2019 to $541.11/SqFt in 2020, a 2% increase. Conversely, Sold Price $/SqFt dropped from $531.60/SqFt in 2019 to $528.86/SqFt in 2020, a 1% decrease. In addition, list price to sold price was up modestly year over year going from 100% in 2019 to 102% in 2020, a 3% increase.
The Second Half of 2020
If the last 30 days are any indication of what the remainder of 2020 will look like, we will continue to be a traditional Ladera Heights housing market with little inventory and low overall turnover, which should keep demand high and prices up in the area. When you also compare Ladera Heights average $/SqFt of $541.11 to that in many neighborhoods of the Westside, where it ranges from $800-1,100 $/Sq Ft, there is still tremendous value for the area. Add to that the pent-up demand from the shutdown now entering the market along with the lowest interest rates in history, the next six months should continue to be strong for the Ladera Heights market. Having said that, we still have high unemployment, a shaky economy, a resurging Coronavirus, and the November election. Any or all of these factors could provide some instability and affect the housing prices in the months to come.
We’re Here to Help in The New Age of Covid-19
If you’re looking to sell your Ladera Heights home and yet, concerned about the potential risks, don’t worry, we have buyers and we’ll sell it safely too. In addition, we offer virtual consultations, 360° tours, and virtual showings – no person-to-person contact. Call or text me at 310-403-7381. I’m available to chat with you for an ideal asking price or to get you an instant offer now to skip the showings. Your safety is our #1 priority.
Wishing you health and safety through these unchartered times.