While Los Angeles area home sales may have slowed in October, listing prices showed no signs of abating.
The Los Angeles-Long Beach-Anaheim metro recorded the largest home price gain nationwide, rising 16.9 percent to a median of $995,100, according to Realtor.com’s October Housing Report. The number of new listings improved significantly, up 17.2 percent compared to the same period last year.
The typical LA home spent 49 days on the market, down six days from October 2019. The active listing count also decreased by 22.9 percent, indicating that homes are still selling at a brisk pace despite higher prices.
New data from residential real estate brokerage Douglas Elliman showed a 2.4 percent drop-off in new signed contracts for single-family homes in October, an indicator of future sales. Throughout Los Angeles County, “new signed contract activity slipped [below] year-ago levels for the first time since June,” wrote Jonathan Miller, president and CEO of Miller Samuel Inc.
Pending transactions for single-family homes priced below $600,000 — of which there are very few — fell sharply, while those listed for over $1 million saw a boost of about 29 percent. Across all price points, there were 4,336 new contracts signed during the month of October.
Condo sales activity bounced back tremendously, “[remaining] well above the same month last year,” noted Miller. New signed contracts surged 25 percent year-over-year, amounting to 1,487 pending deals.
The largest volume of sales was in the $500,000 to $600,000 range, signaling that buyers priced out of the single-family home market may be looking to the condo segment as an affordable alternative.
With the holidays fast approaching and COVID-19 rates ticking up across Los Angeles County, it remains to be seen whether home sale activity will be sustained through the remainder of the year.