Los Angeles has moved toward a buyer's market as luxury listing inventory has grown faster than signed contracts. Weekly Douglas Elliman Eklund Gomes reports showed disproportionate listing additions versus homes entering contract, for example 23 contracts versus 97 listings the week ended March 15 and 20 contracts versus 76 listings the week ended Aug. 17. The market is challenging because interest rates remain high and cyclical timing is uneven. Some sellers remain anchored to original asking prices while buyers discount glossy marketing and photos. Skilled agents play a key role in negotiating a price midpoint to complete transactions.
those who have no problem telling it like it is are coming around to what this is with some market-specific caveats. The shift was perhaps tiptoed into sometime in the first quarter. That's when Marcy Roth of Douglas Elliman's Eklund Gomes team, who compiles the group's weekly signed contracts report, suggested the possibility of a buyer's market in the near future.
The word I would use is challenging because the market is shifting, but not completely, said Christie's International Real Estate Southern California COO Nina Zokhrabyan. Yes, it is a buyer's market, but interest rates are high. The part of the cycle L.A. real estate finds itself in is at a weird moment in time, she said. In some cases, sellers still think their properties are worth what they originally asked, and buyers are seeing through the glossy photos and marketing speak.
That's when the brokerage's data pointed to weekly growth of luxury listings, without comparable signed contracts to offset the inventory ramp. In the case of the week ended March 15, there were 23 homes that went into contract, while 97 listings were added. The most recent Eklund Gomes report for the week ended Aug. 17 had 20 signed contracts, while 76 homes were added to the market.
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