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Signed contracts in LA far outpace new listings in March

Deals for single-family homes nearly doubled new inventory; condos saw similar disparity

Single-family home and condo inventory couldn’t keep pace with demand last month. (Getty)
Single-family home and condo inventory couldn’t keep pace with demand last month. (Getty)

In Los Angeles County, signed contracts for single-family homes priced at below $5 million far outpaced new listings in the category last month, as inventory couldn’t keep up with demand.

There were 4,308 signed contracts countywide for single-family homes in all price categories in March and just 2,395 new homes listed, according to the latest report from Douglas Elliman by appraiser Jonathan Miller.

The disparity between signed contracts and new homes on the market was even greater in Orange County. In the $400,000 and up category, March brough 1,867 single-family home contracts signed and just 511 new listings. Buyers inked deals for 652 condos while just 251 listings hit the market.

In L.A. County, single-family homes in the $500,000 to $699,000 range were particularly popular. At that price point, there were 1,093 deals last month but fewer than 400 new listings.

In the over $5 million single-family home category, there was still plenty of supply. There were 92 signed contracts in that range compared to 179 homes that hit the market, according to the report.

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The condo category wasn’t as lopsided. There were 1,735 signed contracts for condos compared to 1,134 new listings. And there were twice as many condo deals for properties asking above $300,000 last month than there were in March 2020. The comparison highlights how hard the pandemic slammed into the local market.

In the intervening year, overall sales prices in L.A. have trended up while inventory has fallen.

“New signed contract growth is generally seeing greater year-over-year gains in higher price tranches,” said Miller, of the appraisal firm Miller Samuel.

That includes the over $5 million category, where there were more than twice as many signed contracts at that price countywide last month than in March 2020. And for condos asking over $2 million, there were nearly three times as many signed contracts year-over-year.

A blip occurred in the lowest-priced segment, both for single-family homes under $500,000 and condos under $300,000. In that range in both categories, there were fewer signed contracts last month than in March 2020.

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