August 2023 Downtown L.A. Real Estate Market Report

Trends and Analysis

REAL ESTATE NEWS (Los Angeles, CA) — Understanding the current market trends, including home values, rental rates, and inventory levels, is crucial for making informed decisions. The real estate market is always in flux, subject to a myriad of influences ranging from economic conditions to consumer sentiment. For investors, brokers, and homebuyers alike, understanding these market dynamics can be critical to making informed decisions. Here, we compare and contrast real estate market reports from August 2022 and August 2023 to identify key trends and shifts. This report is based on local real estate professional Multiple Listing Service data from Downtown Los Angeles and nearby lofty neighborhoods TheMLS areas 23, 42 and 1375.


Overview of Key Metrics: August 2022

Sold Properties

  • Number of Sold Properties: 57
  • Sold Price Range: $360,000 – $5,500,000
  • Average Sold Price: $872,473
  • Average Price per Sq. Ft.: $738.17
  • Average Lot Size (LSZ): 86,967.79 Sq. Ft.
  • Average SP%LP (Sold Price as a percentage of List Price): 96.67%

Overview of Key Metrics: August 2023

Sold Properties

  • Number of Sold Properties: 25
  • Sold Price Range: $278,500 – $4,202,500
  • Average Sold Price: $684,692
  • Average Price per Sq. Ft.: $669.83
  • Average Lot Size (LSZ): 60,222.38 Sq. Ft.
  • Average SP%LP (Sold Price as a percentage of List Price): 99.70%

Comparative Analysis

Volume of Transactions

One of the most noticeable differences is the volume of transactions. In August 2022, there were 57 sold listings, whereas in August 2023, the number decreased to 25. This represents a significant contraction in the market’s activity level, which may suggest lower demand or supply constraints.

Price Metrics

  • Average Sold Price: The average sold price decreased from $872,473 in 2022 to $684,692 in 2023. This decrease of approximately 21% suggests that property values may be declining.
  • Price Per Square Foot: The average price per square foot also showed a decrease, from $738.17 in 2022 to $669.83 in 2023, indicative of less competitive pricing.

Lot Size Metrics

The average lot size also showed a decline from 86,967.79 Sq. Ft. in 2022 to 60,222.38 Sq. Ft. in 2023. This reduction could be due to a shift in market preference toward smaller properties or a decrease in available larger lots.

Efficiency of Sales

Interestingly, despite the market appearing to cool off in terms of price and volume, the Sold Price as a percentage of the List Price increased from 96.67% to 99.70%. This may indicate that the properties are being priced more accurately in the current market, resulting in sales that closely match the listing price.

Days on Market (DOM) and % of List Price

In both years, properties sold more quickly as the DOM decreased. The percentage of the list price received on sold properties was higher in almost all categories in 2023 compared to 2022, suggesting that sellers are getting closer to their asking price.


Comparative Analysis of Key Financial Metrics Between August 2022 and August 2023

When comparing the two periods, several financial metrics stand out as particularly indicative of market trends. Below, we examine the total sales dollars, total sales transactions, and average and median sold prices for the real estate market in August 2022 and August 2023.

Total Sales Dollars

August 2022:

  • Total Sales Dollars: $49,731,000

August 2023:

  • Total Sales Dollars: $17,117,302

Comparison: There’s a drastic decrease in the total sales dollars between the two periods. The 2023 figure is approximately 34.4% of the 2022 figure, showing a significant contraction in total sales revenue. This could be indicative of a weakening market, reduced demand, or perhaps fewer high-end property transactions.


Total Sales Transactions

August 2022:

  • Total Sales Transactions: 57

August 2023:

  • Total Sales Transactions: 25

Comparison: The number of total sales transactions also saw a substantial decrease, from 57 in 2022 to 25 in 2023. This represents a decline of about 56%. This drop in sales transactions aligns with the decrease in total sales dollars and could indicate a less active market.


Average Sold Price

August 2022:

  • Average Sold Price: $872,473

August 2023:

  • Average Sold Price: $684,692

Comparison: The average sold price decreased from $872,473 in 2022 to $684,692 in 2023. This represents a decrease of approximately 21.5%. This could be due to a variety of factors, including reduced consumer purchasing power or a shift in the types of properties being sold (e.g., smaller homes, less luxurious features).


Median Sold Price

August 2022:

  • Median Sold Price: $630,000

August 2023:

  • Median Sold Price: $470,000

Comparison: The median sold price dropped from $630,000 in 2022 to $470,000 in 2023, showing a decrease of about 25.4%. The sharper decline in the median price compared to the average price suggests that the middle segment of the market might be experiencing a more significant slowdown.


The data suggests that the real estate market experienced a contraction between August 2022 and August 2023. Notably, there are fewer transactions and lower average and median sales prices in 2023 compared to 2022. These changes may signify a variety of economic and market factors, including potential economic downturns, shifts in buyer behavior, or external variables such as interest rates and regulations.

The comparative analysis reveals a market undergoing shifts. While the volume of transactions and average prices have decreased, the efficiency of sales in terms of SP%LP has improved, suggesting better pricing strategies by sellers. These shifts can have various interpretations, from an economic downturn affecting purchasing power to changes in consumer preferences. For any stakeholder in the real estate market, staying updated with such data and trends is crucial for making informed decisions.

Find out how much your neighbor’s loft sold for. Get a free list of recently sold condos in Downtown Los Angeles. Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Downtown Los Angeles Real Estate Market Report | Prices of Today’s Pending Home Sales

REAL ESTATE NEWS (Los Angeles, CA) — What’s really going on with lofts and condos around here? For a real, accurate revelation of the whole truth, here’s a look at exactly what Downtown L.A. home buyers and sellers are transacting right now. Many are unaware that DTLA property values are quite low today in comparison to long-term historic trends, urban home prices are low in comparison to suburban prices and very low when future runaway inflation is accounted for. Take a look at what properties are currently trading hands. Below is a link to twenty of the most typical urban LA properties under contract, representing what is in escrow at this very moment: | PDF

PENDING DTLA HOME SALE TRANSACTION REPORT:
https://www.themls.com/Share/YWFiZ2VjZGZi

Get a free list of live/work lofts in Los Angeles. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker. | PDF