Los Angeles Quarterly Market Insights Report (Micro): Q3 2021

It is our pleasure to bring you the Compass 2021 Q3 Real Estate Market Report. As we approach the end of 2021, a historic year for Los Angeles real estate sales activity remains strong in many Los Angeles communities. The Westside’s home sales activity increased 26 percent over last year’s third quarter. Metro Los Angeles, where sales slowed during the pandemic, rebounded with an 18 percent year-over-year increase in sales activity. Meanwhile, other communities saw the market cool somewhat. San Fernando Valley West saw buyers pull back as third quarter sales activity fell for single-family homes in Sherman Oaks, Studio City, Tarzana, and Woodland Hills. Moving West to Calabasas, single-family home sales fell 18 percent compared to last year. Single-family homes in the San Gabriel Valley community of Glendale declined 13 percent.

Home prices continued to trend upward in most Los Angeles communities as inventory constraints continue to support those market fundamentals. The average sales price for single-family homes in South Pasadena rose 16 percent to $1.8 million. Year-over-year prices for single family homes in Santa Monica continued to rise by 24 percent in the third quarter to an average sales price of over $4 million.

Condo sales activity rebounded from last year’s third quarter around Los Angeles. Marina del Rey had a 35 percent increase year-over-year. Condo sales in Sunset Strip-Hollywood Hills roared back from last year increasing 97 percent. Northridge’s condo sales activity rose 65 percent compared to last year. Look to 2021 for Los Angeles real estate to set price records as interest rates remain affordable and Compass professionals continue to monitor the market.

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