November Market Update
- When I compare home sales using the MLS for my main markets (Beverly Hills, Beverly Hills Post Office, Hollywood Hills, West Hollywood, Bel Air / Holmby Hills, Westwood / Century City, Brentwood, Santa Monica, Pacific Palisades & Malibu)
- For the periods of November 2024 vs November 2023
- We can see transactions have significantly increased:
- Number of houses sold in Nov 2024 was 177 vs 124 in Nov 2023, an increase of 43%
- We can see a decrease in sales price and decrease in price per sq ft:
- Median sales price in Nov 2024 was $3,150,000 vs $3,435,000 in Nov 2023, a decrease of 8%
- Average sales price per sq ft in Nov 2024 was $1,376 vs $1,928 in Nov 2023, a decrease of 29%
- And an increase in the time it takes to sell:
- Average days on market in Nov 2024 was 46 vs 36 in Nov 2023, an increase of 28%
- The highest home value sold in Nov 2024 was $39.0m vs $52.1m in Nov 2023
- What this means:
- I believe the increase in homes sold this November is due to a major slowdown last November as the 30-year fixed mortgage rate climbed to the peak level of nearly 8% and stayed above 7% for the month
- I also believe the increase in transactions this November is due to some momentum returning to the market following the slowdown pre-election
- The decrease in Median sales price for Nov 2024 is consistent with the data from Oct 2024 but it is usual to see some volatility in prices around the holiday season in addition to the election
- We have seen that the sale price per sq ft has been decreasing consistently this year. I believe this is reflective of how price sensitive the market is. Homes that are well priced, especially on a per sq ft basis, appear a good deal to buyers and tend to sell faster
- But note that the sales price per sq ft for Nov 2023 was higher than normal due to some sales in Malibu beach which were over $6,000 per sq ft and increased the average
- The Q4 end of year market review will give us a clearer overall picture of house price trends for 2024!
