Playa Vista Real Estate Market Trends – May 2015
What can May 2015 tell us about the future Playa Vista real estate market?
In the months leading up to May, the number of new Playa Vista listings for sale was very similar to what we saw last year. The difference, when comparing last year to this year, is that homes have been selling much faster because the demand for Playa Vista has measurably increased.
So why is May important when looking at the Playa Vista real estate market for the rest of the year?
This is the first month in 2015 where the number of new listings has substantially deviated from the same month of the previous year. New listings dipped 50% from May of last year (15 homes came on the market this year compared to 30 in 2014).
Not only did new listings decrease by 50% but sales increased by 50% year over year for May.
Looking at the quarterly numbers, which is a better indicator than a month, we see new listings are down 28.6% and homes sold are up 40%. This is compairing March, April and May of 2015 vs. the same 3 months 1 year ago.
How Will Playa Vista’s New Construction Homes Affect Supply?
Another factor to consider is the new construction homes for sale in Playa Vista have been helping satiate demand. With these homes nearly sold out for the remainder of the year it will be interesting to see how this adds to the equation.
There will be new construction homes available next year. If you would like to know what’s to come in 2016 and 2017 check out one of our latest posts, Playa Vista Living’s Guide to Buying New Construction.
Why is There More Demand for Playa Vista Homes for Sale?
The demand for our neighborhood has undoubtedly increased over the past 6 months for many reasons. To point out a few; there is more awareness of Playa Vista, the soon to be open retail and restaurants of The Runway, an improving economy and the expectation of new tech residents like Google and Yahoo.
Quote about Inventory and Affordability from the California Association of Realtors
“While it’s a welcomed sign to see the growth in housing demand continue, the lack of supply remains a concern,” said C.A.R Vice President and Chief Economist Leslie Appleton-Young. “The imbalance between the two sides not only intensifies market competition and pushes home prices higher, but also leads to housing affordability issues that could potentially lower the homeownership rate if it persists.”
If the number of homes for sale in Playa Vista remains low and demand stays high there will continue to be upward pressure on prices. While this is great for sellers and Playa Vista home values, buyers will continue to face tough competition and increasing prices.
If you are a seller, a buyer or a resident with a question I would be delighted to speak with you about your goals and the Playa Vista real estate market.
The data listed above is from the Playa Vista Phase I resale market. It does not include new construction home sales in Phase II.
These analyses were made in good faith with data from sources deemed reliable, but they may contain errors and are subject to revision. Statistics are generalities and how they apply to any specific property is unknown without a tailored comparative market analysis. All numbers should be considered approximate. Please contact us with any questions or concerns.