As buyer preferences shift toward single-family homes, condo listings are flooding the Los Angeles market.
The proliferation of remote work, changing living space requirements, and health and safety concerns have combined to create surging demand for detached, single-family residences. Current condo owners are looking beyond dense, urban areas to more affordable suburban markets where they can gain additional square footage and private outdoor space.
A recent report from residential real estate brokerage Douglas Elliman illustrates just how much the volume of new condo listings has increased across Los Angeles County during the past month.
With 1,381 fresh condo listings, September’s total is 105.2 percent higher than the same period in 2019. There was a four percent decline in the number of new listings from August to September, but the start of the school year is often associated with a slight drop-off in sales activity.
New signed contracts for the condo segment jumped 53.9 percent compared to the same month a year earlier, amounting to 1,419 potential future sales. Nonetheless, President and CEO of Miller Samuel Inc, Jonathan Miller, hinted that the LA condo market may be trending towards oversaturation.
“While condo new signed contracts rose sharply from the year prior, condo new listings more than doubled over the same period,” he wrote.
September’s performance marked a 7 percent decline from the previous month when Miller noted that both the condo and single-family home markets “showed signs of peaking.”
With new listings down 51.9 percent, sale prices of single-family homes ticked higher. There were 4,388 new contracts signed for single-family homes in September, an 11.8 percent boost over the same period a year prior. The majority of homes that went under contract were priced “above the $600,000 threshold” added Miller.
Competition remains fierce among single-family home shoppers in Los Angeles. However, if home prices continue to rise, many families could be priced out of the ground-oriented market entirely. Condos could soon become the only affordable homeownership alternative for middle-income earners and first-time buyers in the county.