Los Angeles homebuyers are likely to pay over asking price, as market demand continues to rise.
More than half of homes in the city that sold in March closed for more than their listing price, according to the Los Angeles Times, citing figures from DQNews.
L.A.’s housing market is historically one of the most expensive and competitive in the country, but the numbers make it clear that this year is different.
Out of 565 sales in the city in March, half closed above the listed amount. In March 2020, 44 percent of homes sold above asking, and in March 2019 just 36 percent of homes sold above the listed price.
Competition within the city of L.A. is strongest at the lower end of the market. Around two-thirds of homes listed under $1 million sold for above their asking price, compared to nearly 44 percent of homes listed above $1 million.
A shortage of listings since the pandemic has been driving up pricing and fueling competition. The median sales price in L.A. County in February was $708,500 — 14 percent higher than February 2020. The number of sales were up 19 percent year-over-year.
Similar trends are playing out across Southern California. The median sales price across the six-county region was up 15 percent year-over-year to $619,750 and sales were up 17.6 percent compared to February 2020.
The national market as a whole is also extremely competitive. Around six of 10 homes that sold in March nationwide sold within two weeks of listing.
[LAT] — Dennis Lynch