REAL ESTATE NEWS (Los Angeles) — Downtown L.A. (DTLA) and its surrounding areas have continued to serve as vibrant hubs for the city’s real estate market. In this blog post, we take a closer look at the dynamics of loft sales in Downtown LA and nearby loft neighborhoods for the month of June 2023 compared to the same period last year, based on MLS data for areas 23, 42, and 1375. Home prices are down and market activity is down.
Volume of Sales
Starting off with the total number of lofts sold, the June 2023 data shows a decrease in sales volume compared to June 2022. This past month, the DTLA loft market saw 34 sales, down from the 64 sales recorded in the same month last year. While such shifts can be influenced by multiple factors, this decline suggests a tightening of the market.
Sales Price (SP) and List Price (LP)
When considering the selling prices, we can observe an interesting trend. In June 2023, the lowest recorded sale price was $280,000, with the highest reaching $1,700,000. The average selling price (SP) was recorded as $688,103. In comparison, June 2022 showed a larger price range with the lowest sale price at $250,000, and the highest soaring up to $3,200,000. Interestingly, the average SP last year was significantly higher at $779,021.
On the other hand, when we look at the List Price (LP), in June 2023 the range was between $285,000 and $1,890,000, with an average LP of $715,485. This contrasts with June 2022 when the LP ranged from $229,000 to $3,375,000, with an average LP of $783,066.
Square Footage and Price Per Square Foot
Focusing on the average price per square foot, June 2023 recorded an average price of $669.30/sq ft., slightly lower than the $739.27/sq ft. of June 2022. The average square footage remained roughly the same, with 1,025 sq ft. in June 2023 compared to 1,055 sq ft. the previous year.
DOM and Average % of List Price Received on Solds Statistics
It’s also noteworthy to look at the Days on Market (DOM) and the average % of List Price received on sold properties. The majority of properties sold in June 2023 were on the market for 0-30 days (50%) and fetched 97.17% of their listing price. Meanwhile, in June 2022, a whopping 71.88% of properties sold within 0-30 days, garnering 100.45% of their listing price, indicating a hotter market in 2022 compared to 2023.
Total Sales Volume
Lastly, it’s worth mentioning the total sales volume. In June 2023, this figure was approximately $23,395,512, down from a much higher volume of $49,857,388 recorded in June 2022. This decrease correlates with the reduction in the number of lofts sold, indicating less market activity this year.
In conclusion, the Downtown Los Angeles loft market in June 2023 showed signs of slowing down compared to the same period last year. The decrease in sales, lower selling prices, and a reduced percentage of the list price received all suggest a cooling of the market. The real estate market in the area has been down for more than 6 months. Whether this shift continues or the market rebounds will undoubtedly be something to keep an eye on in the upcoming months.
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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.