Playa Vista Real Estate Market Trends – February 2015
Are we in a sellers’ market? The answer is a definite Yes. The most glaring trend so far this year is the low amount of inventory in Playa Vista coupled with a ton of eager buyers. We aren’t alone in this trend, throughout Southern California low inventory and the resulting price gains are a common story. Althoug the Playa Vista market appears to be amplified, not only because of low inventory but because of the influx of tech and media companies perfectly timed with “The Runway.” The Runway at Playa Vista will soon bring walkable shopping, restaurants and entertainment to the area.
The following data does not include Playa Vista Phase II sales
Months of Inventory January 2014 to February 2015
Sellers’ Market (0 to 4 months of Inventory), Neutral (4+ to 6 months of inventory), Buyers’ Market (6+ months of inventory)
Condos and Lofts
Townhomes and Single Family Homes
Another contributing factor to higher prices is that the number of units sold this January through February is up almost 100% from last year at this time (12 in 2014 vs. 22 in 2015). Compared to last year, inventory is down and sales are up, clearly showing increased demand for our neighborhood.
When looking at the Southern California real estate market as a whole, the market is seeing lower inventory and lower sales volume. Here’s a statement from real estate analyst, Andrew LePage, about the first two months of 2015 for Southern California:
“The January and February statistics are always interesting, and sometimes a bit strange, but they’re not necessarily a good indication of what’s to come,” said Andrew LePage, data analyst for CoreLogic DataQuick. “That’s largely because many traditional buyers and sellers drop out of the housing market during the holidays and mid winter, and therefore don’t close deals during those months. Heading into spring it will be interesting to see whether price appreciation and other factors will finally release a lot of the pent-up supply of homes out there. More owners have gained enough equity to sell and buy another home and more will be satisfied with how much their homes can fetch. At the same time, recent gains in job and income growth, coupled with low mortgage rates, could stoke demand and put significant pressure on prices unless we see a meaningful jump in inventory.”
Median Sales Price January 2014 to February 2015
Condos and Lofts
Townhomes and Single Family Homes**
**Only 64 listings for Townhomes and Single Family Residences during this time period, possibly too few to chart meaningfully.
Playa Vista Market Insights – February
Homes that are priced well (close to current market value) have been receiving multiple offers and are often selling over the listed sales price. With this much competition, buyers are strengthening their offers in the following ways: offering to pay all of the Community Enhancement Fee, putting more money down to show they are a strong borrower or paying cash. While these offers have become normal from knowledgeable Playa Vista Buyer’s Agents in a competitive market, we are starting to see more requests from sellers.
Most sellers are fetching higher prices for their homes, but they are also able get more favorable terms. Depending on each seller’s goals, they are often able to ask for and obtain the following items: shorter escrow period, shorter inspection period, removal of the appraisal contingency, removal of the loan contingency, selling upon home of choice or a seller leaseback.
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