The Agency’s Second Quarter Report for the Los Angeles prime residential markets was released today, and its finding conclude that the robust momentum of the luxury real estate market continues, with single-family prime sales reaching their highest levels in eight years.
A record 920 prime single-family home closings took place in the second quarter, according to the report. This represents a return to peak levels reached in 2005, when 927 closings were reported.
Shifts in psychographic preferences further fueled demand for the prime West Los Angeles markets as overall culture in the United States has shifted to neighborhoods that provide a higher quality of life, closer to everyday necessities.
The report reveals that the prime condominium market also saw strong gains with 777 closings, just 15% below the peak reached in 2007.
Inventory remains tight — and together with overwhelming demand — the existing supply of new development has been rapidly decreasing and developers are actively acquiring new sites.
There are over 5,000 new units under construction in Downtown LA. There are also over 250 small-lot residences planned for the Silver Lake-Echo Park neighborhoods in the next two years.
In the West LA neighborhoods, speculative single-family home development has been very common, and new residential towers are starting to break ground. It is common for speculative houses to sell during construction and for new homes that hit the market to be the subject of bidding wars.
The Research & Planning Team is a part of the New Development Group at The Agency. Collectively, they are advising on the most important new developments on the West Coast. For information on market intelligence, or for individual property analysis, please contact us.