Overview

Condominium sales in Los Angeles have reached a significant decline, marking a 20-year low. This downturn occurs amidst a pause in the relentless rise of housing costs in the area.

Data from real estate firm Attom indicates that the number of condos sold in the first two months of the year has drastically decreased. Additionally, the median price of condos has also seen a notable decline.

Key details

  • The number of condo units sold in Los Angeles has dropped to a more than 20-year low.
  • The median price of a condo fell nearly 5% in February compared to the previous year.
  • Richard Green, director of the Lusk Center for Real Estate at USC, suggests that cooling condo sales may indicate broader market weakness.
  • High home-loan rates, a decrease in new unit construction, and economic uncertainty are contributing factors to the slowdown.
  • Condos tend to decline in sales faster than single-family homes during market softening.
  • In December, L.A.-area rent prices reached a four-year low.
  • Apartment vacancy rates in the area hit a nearly five-year high.
  • The median price of a Los Angeles County condo fell 4.5% in February year-over-year.
  • In contrast, the median price of a single-family home decreased by 1.6% during the same period.
  • Median rents in L.A. have recently decreased, providing some relief for tenants.
  • Condo values surged during the pandemic but have remained relatively stable for the past two years, with median prices around $700,000 for a two-bedroom unit.

Context

The current state of the condo market reflects broader trends in the housing sector, where rising costs and economic factors are influencing buyer behavior and market dynamics.

What happens next

As the market continues to evolve, it remains to be seen how these trends will impact future sales and pricing in the condominium sector.

What we don't know yet

Details regarding the specific reasons for the decline in condo sales and the potential long-term implications for the market are not confirmed.