Prices Rise as Sales Slide and Inventory Expands

Douglas Elliman Real Estate, the second largest independent residential real estate brokerage in the United States by sales volume, today released its second quarter 2019 sales reports for Greater Los Angeles and LA submarkets Malibu/Malibu Beach and Venice/Mar Vista. The report showed that while prices continued to rise,finishing the quarter with the third highest prices on record since 2004, sales slid as inventory continued to expand.

“This past quarter, we saw both median and luxury sale prices increase, while at the same time, the pace of sales slowed and inventory grew,” said Stephen Kotler, CEO of Douglas Elliman’s Western Region. “Although the market was moving slowly, price-wise, there were records broken in the County.”

The pattern of rising sales prices, slowing sales and increased inventory repeated itself throughout Los Angeles, including the Westside, Downtown, Malibu and Malibu Beach, as well as Venice and Mar Vista.

“Once again, Los Angeles is showing us a market that is continuing to experience the aftermath of general uncertainty about the overall economy and impact of the new tax law,”said Jonathan Miller, President of Miller Samuel, Inc., the author of the report. “These factors are resulting in softer sales and growing inventory, as consumers remain cautious about making such big decisions in the current climate.”

GREATER LOS ANGELES INCLUDING WESTSIDE AND DOWNTOWN SALES HIGHLIGHTS

Trends

“The market was characterized by fewer sales and more listing inventory.”

- Market wide median sales price rose year over year to the third highest level on record

- Listing inventory expanded annually for the fifth straight quarter

- All price trend indicators rose year over year as marketing time edged higher

- Luxury median sales price expanded year over year as inventory grew at a slower pace than the overall market

Key Trend Metrics (compared to same year ago period)

- Median sales price jumped 16.2% to $1,510,500

- Number of sales declined 7.9% to 1,566

- Days on market was 54, up from 52
- Listing discount was 4.2%, down from 4.5%

- Listing inventory increased 22.4% to 3,355

LA SUBMARKETS

MALIBU/MALIBU BEACH

- Malibu single-family sales and listing inventory continued to remain below year-ago levels

- Malibu Beach condo price trend indicators continued to surge as the number of sales declined

VENICE/MAR VISTA

- Venice single-family price trend indicators and sales moved higher year over year

- Mar Vista condo sales and price trend indicators rose year over year

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.