End of Year Analysis & November 2022 Micro Market Report

The median home sale price in Los Angeles County declined again for the third straight month. The median sale price in November 2022 was $870,000, which represents a 2.2% decline from the previous month and is a 1.1% decline from previous year. It is clear that the market has cooled significantly since its peak earlier this year; the average days on market ticked up again from last month to 39 days, while closed transactions are down 43.9% from this time last year. This is due in part to fewer listings on the market now than a year ago, which is keeping supply down, and rising interest rates softens demand among buyers.

As we’ve seen before, not all areas in Los Angeles are experiencing declining prices. Beverly Hills, BHPO, Brentwood, the Sunset Strip, and Venice all saw median sales prices increase month over month and year over year; this is notable particularly in Venice and Sunset Strip, where prices had been on a downward trend since May of this year. Santa Monica, Malibu, Bel Air, and Hancock Park all had median sale prices that were lower in November 2022 than in the previous month and the previous year. The Pacific Palisades, one of the most sought-after neighborhoods in all of LA, has seen mostly rising prices this year, and while the median sales price is lower month to month, it’s still higher in November 2022 than in 2021.

• Number of homes for sale is way down, almost to its lowest level in 3 years. There are just 70 homes for sale now, compared to its peak in September and October of 2020, where there were 170 homes for sale.
• Months’ supply is 4 months.
• Sales price has been on a general upward trend, although the median and average sale price in the palisades peaked in April and May 2022. As of November 2022, the median sale price in the Palisades is $4,325,000. This is an increase of 2.1% year over year, but slightly lower than it was last month.

• Inventory is also way down. The number of homes for sale in Brentwood is 62 homes, its lowest level in the past 3 years.
• Months’ supply is 4 months
• Brentwood has also seen prices on an upward trend since November 2020, although median sales price peaked in July 2022 at $7,169,000. As of November 2022, the median sale price in Brentwood is $4,140,000. This is up 25% year over year, and up from the previous month.

• Inventory is down from the peak that occurred in August 2020 but has increased from its lowest point, which occurred Dec 2021-May 2022 where there were only 55-62 listings for sale. Currently there are 77 homes for sale in Santa Monica.
• Months’ supply is 6 months (this is a function of there being slightly more homes for sale and but significantly fewer closed sales). There were definitely fewer sales in 2022 (where the highest number of closed sales in any month was 24) compared to 2021 (where the highest number of sales was 37).
• Since the start of Covid, Santa Monica median sales prices have been rising steadily, although it has been on a decline since Sept 2022, when the median sale price was over $4.3m. As of November 2022, the median sale price was $2,362,500, which is a 30% decrease year over year and a decline from the past month.

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