Playa Vista Real Estate Market Trends – Mid-Year Review 2015
The first six months of 2015 have proven to be exciting and transformative for the Playa Vista community and real estate market. A combination of changes in our neighborhood have increased the awareness and popularity of Playa Vista which has directly affected real estate values. Let’s take a look at the difference in Playa Vista home values by comparing the first 6 months of 2015 to the same time period last year.
Shifts in the number of homes sold and the amount of inventory is where we have seen the most substantial changes in Playa Vista real estate. Thirty three fewer homes have been put up for sale through the first six months of 2015. Last year we saw 106 new listings over this time period and this year we’ve seen just 73. This lower inventory in addition to a boost in the number of homes sold has altered the market. Closed sales have by surged 32% with 74 homes sold compared to 56 in 2014.
In most areas of Southern California the number of homes sold is lower than the average which is a major difference when comparing Playa Vista to the rest of SoCal. Our area is a hot spot. Playa Vista has turned heads with it’s beautiful retail and residential developments but most of the attention is from the city’s ability to pull in tech companies like Google, Yahoo, Facebook and Youtube.
This data is from the Playa Vista resale market. New home sales are not included.
When examining the market it’s easy to draw a line to higher values. Fewer options for buyers and more demand for the area is creating competition resulting in increasingly higher prices. The median sales price has gone up by 6%, price per square foot has jumped 9.70% and the average selling price is up 17.20% when comparing the first half of this year to the same stretch in 2014.
Excerpt from the LA Times on the Southern California Housing Market
Home sales are up. All-cash and investor purchases are down. And home prices are rising at a more sustainable pace than in the last few years.
The sales increase, the largest in nearly three years, put the number of sales just 9.6% below average, CoreLogic said. A year ago, sales were nearly 24% below average.
“This is the real recovery,” Christopher Thornberg, founding partner of Beacon Economics, said of a market where increasingly buyers actually want to live in the houses they purchase. “The last was the investor recovery.”
Notably, it appears more families are entering the market as the economy improves. Although still elevated in comparison to long-term averages, the share of absentee buyers — mostly investors — slid to 21.1%, the lowest percentage since April 2010, CoreLogic said.
At a little more than six months into 2015 Playa Vista has already had a great year, but there is more to come… This coming fall and winter many of the commercial and retail tenants will be moving in, plus Brookfield Residential will be unveiling its latest single family home community, Everly at Playa Vista.
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Here is a link to the full LA Times article: http://www.latimes.com/business/la-fi-home-prices-20150716-story.html