With Slight Easing of Sales Late in 2018, Prices Still Edge Previous Year

Douglas Elliman Real Estate, the third largest residential real estate company nationwide, today released its fourth quarter 2018 sales reports for Greater Los Angeles and LA submarkets Malibu/Malibu Beach and Venice/Mar Vista. Residences in Greater Los Angeles, including the Westside and Downtown, saw median sales prices rise for the second straight quarter. Even with a decline in sales and an uptick in inventory, 2018 ended with a higher total sales volume than the previous year.

In Los Angeles, all price trend indicators moved higher and the luxury condo median sales price rose annually for the second consecutive quarter. “Buyers have been enjoying more choices as the condominium market has become a viable competition to the traditional LA single family home,” said Stephen Kotler, CEO of Douglas Elliman’s Western Region. Listing activity in Venice expanded this past quarter, while Mar Vista prices trended higher than a year ago.

In Malibu and Malibu Beach, single-family and condo sales were down sharply. “In light of November’s wildfires, it was natural for sales activity to slow,” continued Kotler. “Despite what residents experienced, Malibu is an extremely resilient community and we are incredibly optimistic about its future.”

The number of sales declined year-over-year for the third consecutive quarter as inventory rose. “There’s been a downshift in the Los Angeles market as it cools a bit from the frenzied pace of previous quarters,” said Jonathan Miller, President of Miller Samuel, Inc., the author of the report. “The overall picture points to a market taking a pause.”

GREATER LOS ANGELES INCLUDING WESTSIDE AND DOWNTOWN SALES HIGHLIGHTS

Overview

“Overall price trends moved higher as sales slipped and inventory expanded.”

- Number of sales declined year over year for the third consecutive quarter

- All price trend indicators rose year over year for the second straight quarter after declining in the spring

- After three consecutive quarters, of annual inventory gains, the market pace was the slowest in three years

- Total sales for 2018 edged above the total for 2017

- Despite the decline in luxury average sales size for single-families, all price trend indicators moved higher

- Luxury condo median sales price rose annually for the second consecutive quarter

Key Trend Metrics (compared to same year ago period)

- Median sales price rose 3.5% to $1,500,000

- Average sales price edged up 3.4% to $2,385,436

- Number of sales declined 5.2% to 1,247

- Days on market was 59, up from 55
- Listing discount was 4%, up from 3.5%

- Listing inventory increased 33.3% to 2,580

LA SUBMARKETS

MALIBU/MALIBU BEACH

- Malibu single-family and condo sales were down sharply year over year

- Malibu Beach single-family and condo average sales size shifted lower, skewing price trend indicators lower

VENICE/MAR VISTA

- Venice single family and condo sales were down year over year as listing inventory expanded

- Mar Vista single-family and condo price trends moved higher from year ago levels

About Douglas Elliman Real Estate 

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the third largest residential real estate company nationwide. With more than 7,000 agents, the company operates approximately 113 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado and Massachusetts. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.