Sales Prices Set Record High as Number of Sales Continue to Slip

Douglas Elliman Real Estate, the second largest independent residential real estate brokerage in the United States by sales volume, today released its thirdquarter 2019 sales reports for Greater Los Angeles and its submarkets Malibu/Malibu Beach and Venice/Mar Vista.

The report showed a rise in the median sales price in Greater Los Angeles, setting a new record high at $1,549,000. The number of sales declined for the sixth quarter in a row, however, due to reduced affordability resulting from the federal SALT tax law. Listing inventory was also on the rise for the sixth straight quarter.

“We’ve seen record pricing in Los Angeles this quarter, but we’re also still seeing the effects of the SALT tax taking a toll on sales,” said Stephen Kotler, CEO of Douglas Elliman’s Western Region. “Falling mortgage rates have helped mitigate some of the SALT impact, and with aspirational sellers clearing their listings from the market and reducing pricing confusion, we hope to see a more active market in the coming months.”

In the Los Angeles submarkets, results were mixed. Malibu showed sales and inventory both declining year-over-year for the third straight quarter, and the median sales price for condos in Malibu beach rose for the fifth straight quarter. Venice condo prices declined as sales surged, and listing inventory in Mar Vista decrease sharply, negatively impacting sales numbers.

“Buyers in Los Angeles are being very cautious as the market adjusts to the federal tax law and we see a bit of a move away from luxury,” said Jonathan Miller, President of Miller Samuel, Inc. and author of the report. “As sellers become more realistic to market conditions, I expect we’ll see sales bounce back.”

GREATER LOS ANGELES INCLUDING WESTSIDE AND DOWNTOWN SALES HIGHLIGHTS

Trends

“While reaching a new overall price record, sales continued to slip.”

- Median sales price set new record, exceeding the last record set in the prior-year quarter

- Listing inventory rose year over year for the sixth straight quarter

- All price trend indicators rose year over year for the second straight quarter

- The number of sales has declined annually for the sixth consecutive quarter

- Luxury single-family listing inventory has fallen year over year for three of the past four quarters

- Luxury condo median sales price expanded annually for the fifth consecutive quarter

Key Trend Metrics (compared to same year ago period)

- Median sales price rose 1.6% to $1,549,000 [record]

- Number of sales declined 3.6% to 1,543

- Days on market was 58, up from 54
- Listing discount was 5.6%, up from 3.2%

- Listing inventory increased 6% to 3,283

LA SUBMARKETS

MALIBU/MALIBU BEACH

- Malibu single-family sales and listing inventory have declined year over year for three straight quarters

- Malibu Beach condo median sales price rose year over year for five straight quarters

VENICE/MAR VISTA

- Venice condo price trend indicators declined as sales surged year over year

- Mar Vista single-family listing inventory fell sharply for two straight quarters, restraining sales

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. 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.