Sales of Los Angeles homes surged in March, according to a new report from the CA Association of Realtors. The median sale price in L.A. County was $465,810, down from $470,200 in February but well above the $441,700 price that median single family homes were selling for a year ago. If those prices seem low, that’s probably because the association does not factor newly-constructed homes into its calculations, which are typically more expensive. For comparison, a recent report from CoreLogic, which does include new houses in its analyses, found the county’s median sale price in February was $525,000.
According to the report, total sales were up an impressive 45% since last month and 8% over March 2016. Meanwhile, the median amount of time homes spent on the market before finding a buyer dropped below 30 days—from 39 days in February and 43 days last March. That’s the shortest amount of time on the market in more than a year, according to the Realtor association. Example: A recent listing of mine (pictured and hot-linked) at 718 N. Alpine Drive in Beverly Hills was under contract 8 days following an over-asking price multiple offering that settled at $8,100,000.
Economists suggest that strong sale numbers statewide may be the result of rising interest rates and persistent warnings of future hikes that have inspired home buyers to make purchases sooner rather than later. Whatever the reason, the uptick in sales has cut into the total supply of homes available for purchase—which could, in turn, lead to higher prices this summer.