by Tami Humphrey and Chad Aronson
Hello Neighbors! With this article, we wanted to share how some Playa Vista homeowners are making their space more usable while increasing the value of their property. We’ve also included market insights based upon the third quarter sales in Playa Vista along with our predictions for the rest of the year.
Two + One = Increased Value
Playa Vista homeowners are making modifications to floor plans to meet their needs and they are adding value at the same time. Three bedrooms are rare in our neighborhood. In Phase I, approximately 75% of condos are two bedrooms while just 18% are 3 bedrooms.* Because prices are so much higher for three bedrooms, many existing homeowners, as well as new buyers are deciding to convert two bedroom plus den condos into three bedrooms.
Looking at sales thus far in 2017, two bedroom Playa Vista condos are selling for $991,000 on average. During the same timeframe, the average sales price for three bedroom condos in Phase I is $1,227,000 and in Phase II the average price for a 3 bedroom condo is $1,682,000.
It’s clear to see that if you need a third bedroom and it’s possible to make it happen with your 2 bedroom floor plan it is well worth the investment. With some of our listings, we have worked with clients to make these changes prior to going on the market.** It really separates the home from competing properties and can provide a great return.
Q3 Market Insights for Condos and Townhomes in Phase I of Playa Vista
Low inventory, more closed sales and fewer days on market all point to increasing demand for Playa Vista. Looking at the third quarter of 2017 compared to the same time period in 2016, the average sales price has increased by 22% from $847,000 to $1,035,000. From the 3rd quarter of 2016 to the 3rd quarter of 2017, the number of new listings decreased by 20%, the number of closed sales increased by 36% and the average days on market is down 27%.
While we saw big changes for the year over year comparison, the consecutive quarter numbers from Q2 to Q3 remained relatively the same. Comparing the second quarter of 2017 to the third, the average sales price was mostly unchanged, up a half a percent. New listings were down from 37 to 35 and closed sales were up from 30 to 34. The days on market continues to trend down from 35 in the second quarter to 29 in the third quarter.
Q4 Expectations for Phase 1 Condos and Townhomes
Using the last 4 years as an indicator, we should see lower inventory in the 4th quarter. Most likely 25 to 28 new listings come onto the market. Now, just one week into the 4th quarter there are only 4 Phase I condos/townhomes for sale. This lower than normal inventory coupled with the trend of fewer new listings during the last couple months of the year, it is safe to say prices will continue to increase.
We are always available if you would like to talk about the Playa Vista Real Estate Market or if you have any questions about our market reports. We can be reached by email at firstname.lastname@example.org or by phone at 310-745-1600.
* Based upon 2016 and 2017 sales in playa vista approximately 75% of sales have been two bedroom condos and 18% have been 3 bedrooms.
**While these modified floorplans function as 3 bedroom condos they may still be considered 2 bedrooms on public record. With our listings, we make sure this is disclosed to all potential buyers.