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October 17, 2018

Bay Area Luxury Housing Market Pulls Back While Los Angeles Holds Steady

Pacific Union Chief Economist examines third-quarter luxury home sales trends in Los Angeles and the Bay Area, with the former market faring better than the latter.

Executive Summary:

  • Luxury home sales took a pause in the third quarter after a strong second quarter, particularly in the Bay Area, although they were in line with seasonal trends seen in prior years.
  • While Los Angeles luxury home sales have generally trended higher since 2016, the Bay Area saw a dip in luxury sales in 2017 followed by a 2018 rebound.
  • Luxury buyer sentiment was stronger in Los Angeles in the third quarter than in the Bay Area, with an improved list-price-to-sales-price ratio and fewer days on the market.
  • Bay Area luxury buyers were hesitant, with homes lingering longer on the market and larger average discounts.
  • The inventory of luxury homes in Los Angeles continues to increase, especially in the third quarter.
  • The inventory of luxury homes in the Bay Area retracted in the third quarter.

Sales of luxury homes picked up over the last two years in the Bay Area and Los Angeles housing markets. However, with home sales activity generally slowing since the summer, it appeared that high-end activity might pull back. With more September activity, though, the quarter ended on a solid note — or at least in line with third-quarter activity seen in the two previous years.

 

To read the full post, click here: https://pacunion.us/2Eq0Aoh