Category: home prices

Posted on

Downtown Los Angeles Real Estate Market November 2023

REAL ESTATE NEWS — The Downtown L.A. real estate market for condos and co-ops in November 2023 exhibits significant differences compared to the same period in 2022. Here’s an analysis, comparison, and contrast of key metrics:

  1. Number of Listings: There was a decrease in the number of listings from 23 in November 2022 to 16 in November 2023. This suggests a tighter market with fewer properties available for sale.
  2. Days on Market (DOM): The average and median DOM increased notably from 44 and 29 days in 2022 to 86 and 68 days in 2023, respectively. This indicates that properties stayed on the market longer before being sold in 2023.
  3. Pricing Trends:
    • Low Price: The low-end prices dropped from $385,000 in 2022 to $299,000 in 2023.
    • Median Price: The median price decreased slightly from $695,000 in 2022 to $530,000 in 2023.
    • High Price: The high-end market also saw a decrease from $1,599,900 in 2022 to $965,000 in 2023.
  4. Average Price and Square Footage:
    • Average Price: The overall average price saw a decrease from $777,426 in 2022 to $561,743 in 2023.
    • Average Price per Square Foot: The average price per square foot decreased from $740.93 in 2022 to $602.56 in 2023.
    • Average Square Footage: Remained constant at 915 square feet for both years.
  5. Lot Size (LSZ): The average and median lot size remained roughly the same, but the average price per lot size decreased from $18.29 per LSZ in 2022 to $12.72 per LSZ in 2023.
  6. Sales Performance:
    • Average SP/Avg. LP (Selling Price vs. Listing Price): There was a slight decrease in the average selling price compared to the listing price, from 98.64% in 2022 to 97.76% in 2023.
    • Total Volume: There was a significant decrease in total sales volume, from $17,880,800 in 2022 to $8,987,900 in 2023.
  7. DOM and Average % of List Price Received on Solds Statistics:
    • There was a more even distribution of sales across different DOM ranges in 2023, with a notable portion (37.5%) selling after 120+ days.
    • The percentage of the list price received was relatively high and consistent across different DOM ranges in both years.

Overall Summary:

  • The Downtown Los Angeles condo and co-op market in November 2023 was characterized by fewer listings, longer sales durations, lower prices across the spectrum, and a significant drop in total sales volume compared to November 2022.
  • The decrease in prices and increase in DOM might indicate a buyer’s market in 2023, where buyers had more negotiating power due to less competition and a greater supply of properties available for longer periods.

While October showed a notable improvement over the same month last year, suggesting a potential upturn, it now appears that this uptick was an anomaly, with the overall trend still indicating a falling real estate market for the urban L.A. city center. Most home prices are holding strong due to overall inflation concerns.

Find out how much your home is worth. Get a free list of recently sold lofts, condos or houses, along with a list of active listings. Fill out the online form.

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.

Posted on

L.A. Loft Book Page 6: Los Angeles Lofts Price Range & Investment

L.A. is a bustling city known for its diverse culture, growing tech industry, and, of course, its bustling real estate market. One of the most sought-after property types in LA are lofts. We will dive deep into the financial aspects of L.A. lofts, breaking down the price ranges and analyzing whether investing in a loft in the City of Angels is a wise financial decision.

Before we delve into the financial dynamics, let’s look at the key metrics for Los Angeles lofts sold in August 2022, which averaged nearly $900,000:

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%

Based on August 2022 statistics, here’s a breakdown of the sold loft price ranges in Los Angeles:

Entry-Level Lofts:
Price Range: $360,000 – $600,000
Average Price per Sq. Ft.: Approximately $550

Mid-Tier Lofts:
Price Range: $600,000 – $1,200,000
Average Price per Sq. Ft.: Approximately $700

Luxury Lofts:
Price Range: $1,200,000 – $5,500,000
Average Price per Sq. Ft.: $800 – $1,200

Is Investing in a Loft a Wise Financial Decision?

When considering the financial benefits, investing in a loft in Los Angeles appears to be a good opportunity, especially when taking into account the following:

ROI (Return on Investment)
The Average SP%LP of 96.67% indicates a strong market where properties often sell close to their listing price. This suggests a stable market that is less susceptible to lowball offers and extreme negotiation, making it a reliable investment. Over the last 14 years, Los Angeles lofts have often varied greatly, from zero return to 300% growth in value.

Appreciation
The diversity in loft prices from $360,000 to $5,500,000 offers various opportunities for capital appreciation, particularly in booming neighborhoods and upcoming commercial developments.

Rental Yields
Given the demand for lofts among young professionals and creatives, loft properties often command higher rent, providing good rental yields for investors.

Factors Affecting the Value of a Loft

Location: Lofts in downtown L.A. or close to tech hubs tend to be priced higher. The best of the best have thrived the most. Some lofts around Skid Row have tended to stagnate, especially if they were purchased at the top of the market.
Amenities: Properties with high-end amenities like pools, gyms, and parking spaces usually command higher prices.
Size and Layout: Spacious lofts with open layouts and additional features like balconies can increase the property’s value.

Investing in a Los Angeles loft can be a wise financial decision based on the current market metrics. Various price ranges provide options for different kinds of investors, from those looking to break into the market to those aiming for high-end, luxury spaces. Keep an eye on neighborhood trends, building amenities, and the overall economic climate to make the most out of your investment.

Investing in a loft can be an exciting and potentially profitable venture, but it does require careful planning and research. Below are some steps to guide someone interested in investing in a loft:

Preliminary Research
Location: Consider the area where you’d like to invest. Proximity to amenities, public transport, and overall neighborhood vibe can significantly impact the value of a loft.
Budget: Calculate your budget to figure out what you can afford, including down payment, mortgage, and any renovation costs.
Market Analysis: Examine the local real estate market trends. Are property values on the rise? Is it a buyer’s or a seller’s market?
Purpose: Determine the reason for your investment. Do you plan to rent it out, sell it at a higher value, or use it for personal reasons?

Financing
Pre-approval: Before you start seriously looking for properties, get pre-approved for a mortgage to understand how much you can afford and to speed up the buying process.
Investment Loans: Research the different loan options available for investment properties, as these may differ from owner-occupied property loans.
Property Selection
Features: Lofts have unique features like high ceilings, open floor plans, and large windows. Make sure these features align with your investment goals.
Condition: Assess the condition of the property. Older lofts may require renovations or updates, affecting your budget.
Legalities: Make sure the loft is zoned for your intended use, especially if you plan to rent it out.

Making the Purchase
Negotiation: Based on your findings and market analysis, negotiate the purchase price.
Inspection and Appraisal: Before closing, have the loft inspected and appraised to confirm its condition and market value.
Closing: Finalize your financing, complete all necessary paperwork, and make the purchase.
Post-purchase Actions
Renovations/Upgrades: If needed, carry out any renovations or upgrades to improve the loft’s value or rental appeal.
Property Management: Decide if you’ll manage the property yourself or hire a property management service, especially important if you intend to rent it out.
Marketing: Whether you’re reselling or renting, effective marketing can help attract potential buyers or tenants. Online listings, virtual tours, and professional photography can be beneficial.
Tax Planning: Understand the tax implications of owning an investment property, including potential deductions and how rental income is taxed.

For more in-depth information on Los Angeles lofts and other real estate investment opportunities, feel free to get in touch with us.

Want to learn more about real estate opportunities in Los Angeles? Subscribe to the L.A. Loft Blog for the latest updates and expert insights into the world of L.A. real estate.

Get a free list of amazing historic Mills Act lofts with tremendous character and property tax benefits. 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 | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

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. The information provided in this page is for educational purposes only and should not be considered financial or investment advice. Always consult with a financial advisor before making any investment decisions. 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.