Comparative Analysis of Downtown L.A. Property Sales Data: July 2022 vs July 2023
REAL ESTATE NEWS (Los Angeles, CA) — The dynamics of the Downtown Los Angeles real estate market have been fascinating over the past year. Comparing the data for July 2022 and July 2023 reveals interesting trends that both buyers and sellers can learn from. While some aspects of the market remained steady, others displayed considerable fluctuations, reflecting the broader economic trends and consumer behavior influenced by various factors, including persistent price inflation, pesky pessimism and a sideways economy.
Sales Volume and Prices
One of the most notable differences between July 2022 and July 2023 is in the number of properties sold. In July 2022, a total of 59 properties were sold, compared to 32 in July 2023, marking a significant decrease in sales volume. This reduction could be attributed to several factors, including changes in market demand, alterations in financing conditions, or shifts in consumer sentiment.
When we examine prices, the median sale price increased from $629,000 in 2022 to $686,000 in 2023. Interestingly, despite the lower sales volume in 2023, the market displayed robust growth in terms of prices. This suggests that while fewer properties changed hands, those that did attracted higher prices.
It is worth noting that the price per square foot also saw a slight reduction from $683.14 in July 2022 to $651.22 in July 2023, pointing towards a potential preference shift towards larger properties among the buyers.
Days on Market (DOM)
The average DOM, a measure of how long listings stay on the market before they’re sold, showed a marked shift between July 2022 and 2023. While specific figures aren’t provided, the breakdown percentages reveal the time properties spent on the market.
In July 2022, the majority of the properties (62.71%) sold were on the market for 0-30 days, indicating a fast-moving market. In July 2023, however, this percentage dropped slightly to 53.13%. There was an increase in properties that took longer to sell, specifically those in the 61-90 days bracket, going up from 6.78% in 2022 to 18.75% in 2023. This longer selling time may be a reflection of the decreased sales volume and could suggest a more balanced or even buyer-favored market.
Percentage of List Price Received
The average percentage of the list price received, a crucial metric for sellers to understand how much they might need to negotiate, remained relatively stable. In July 2022, the average Sold Price (SP) to List Price (LP) ratio was 97.97%, reducing slightly to 97.77% in 2023. Despite the overall cooling of the market indicated by the reduced sales volume and longer DOM, sellers were still achieving close to their asking prices. This persistence of high SP to LP ratios even with slower sales suggests that property values in Downtown Los Angeles remain resilient, and there is a consistent demand for properties.
Total Sales Volume
Rising interest rates, uncontrolled inflation and economic stagnation combine to create a relatively blah real estate market for DTLA. In terms of total sales volume, July 2022 recorded a significantly higher figure, with a total of $52,040,300 worth of properties sold. In contrast, July 2023 saw a total sales volume of $23,259,888. This decrease is consistent with the reduction in the number of sales and potentially indicates a more cautious or constrained market in 2023.
While the Downtown Los Angeles real estate market showed signs of slowing in terms of sales volume and the pace of sales in July 2023 compared to the same period in 2022, it remained strong in other areas. Property prices, especially the median price, showed an uptrend, and sellers were still able to achieve close to their asking prices. This suggests that even as market conditions shift, Downtown Los Angeles continues to be a desirable location with enduring demand.
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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.