Sales Slowed; Listing Inventory Increased

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

In Los Angeles, sales declined for the fourth straight quarter, and as inventory expanded, the market share of “whisper” listings (a sale that closed in public record, but was not listed in the MLS) declined. Price trend indicators throughout Greater Lost Angeles, including the Westside and Downtown, showed mixed results with a drop in median sales price year-over-year.

“The key theme we’re seeing in Los Angeles right now is the continuation of slowing sales along with increasing inventory,” said Stephen Kotler, CEO of Douglas Elliman’s Western Region. “These trends are consistent with much of California, and while this accounts for a drop in the number of pocket listings we’re seeing in general, it’s interesting that sales over $5 million actually had the highest share of pocket sales recorded in more than two years.”

In Malibu and Malibu Beach, single-family and condo inventory fell as the average sales size skewed toward the smaller end of the market. Price trend indicators in Venice ranged from flat to rising year-over-year this past quarter, while Mar Vista prices rose sharply from year-ago levels and inventory expanded.

“The sales pace in the Los Angeles market has continued to slow this quarter,” said Jonathan Miller, President of Miller Samuel, Inc., the author of the report. “This decline is likely caused by affordability challenges combined with years of consistently low inventory as well as changes to the federal tax law causing buyers to hold back.”

GREATER LOS ANGELES INCLUDING WESTSIDE AND DOWNTOWN SALES HIGHLIGHTS

Overview

“Overall market share of pocked/whisper listings declined as listing inventory expanded.”

- Number of sales declined year over year for the fourth straight quarter, consistent with the decade quarterly average

- Price trend indicators showed mixed results, with median sales price falling from the year-ago record

- Listing inventory expanded year over year for the fourth consecutive quarter

- Market share of pocket/whisper listings fell across most price categories

- Sales market share of larger single-family sales declined

- Luxury price trend indicators for condo and single-family sales generally moved higher

Key Trend Metrics (compared to same year ago period)

- Median sales price declined 4.5% to $1,455,000

- Average sales price edged up 1% to $2,449,118

- Number of sales declined 26.4% to 1,077

- Days on market was 62, down from 63
- Listing discount was 4.6%, up from 4.1%

- Listing inventory increased 27.7% to 2,883

LA SUBMARKETS

MALIBU/MALIBU BEACH

- Malibu single-family and condo sales year over year remained well below year-ago levels as sales size shifted to smaller homes

- Malibu Beach single-family and condo inventory fell as average sales size skewed lower

VENICE/MAR VISTA

- Venice single family and condo price trend indicators ranged from flat to rising year over year as sales remained well below year-ago levels

- Mar Vista single-family and condo price trend indicators rose sharply as inventory expanded sharply but remained inadequate for the demand

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 118 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.