The following Neighborhood Spotlight was originally published in The Agency Report – Third Quarter.
The neighborhood spotlight this quarter is on prime single-family home sales in Silver Lake-Echo Park. The neighborhood has returned to peak pre-recession levels, with 31 sales in 2013 over $1 million. While average pricing has remained consistent since 2005, average price per square foot has increased, also returning to peak levels at $540.
The Silver Lake neighborhood has become a destination for buyers looking for a sense of community who relish in the independent spirit of the community. The area has been abuzz with new construction, with small lot developments prevalent throughout the neighborhood. Often, these homes are sold within days or weeks of coming on the market.
The market in Silver Lake is predominately under $1 million, with a majority of the small lot developments in the $600,000 – $900,000 range and therefore absent from this report. The market over $1 million represents just 11% of all neighborhood transactions in 2013 year-to-date.
This is the highest market share since 2008, but still below peak levels reached in 2007. There is a dearth of supply in the neighborhood. While market-wide, Silver Lake has just 1.6 months of supply, the market north of $1 million is somewhat higher at 3.2 months of supply. This is still undersupplied, as a balanced and normal months of supply is 6 – 9 months.
Download the full report here.