February opened with the groundhog’s promise of 6 more weeks of winter, but Los Angeles has resisted with some of the mildest winter temperatures on record. The real estate activity has plenty of heat in it as well as we’ve seen the momentum in all price points keep pace with the best months of 2017.
Super Bowl fever opened the month and sports will continue to be the main topic as the Winter Olympics are held in South Korea. The sporting events will keep enthusiasts watching in their living rooms, but serious homebuyers are out in droves attending weekend open houses.
Buyer demand has stepped back since its peak of May 2017 when 720 luxury homes were in escrow compared against the current total of 266. Inventory levels were at peak in July with 3962 luxury homes available compared against the current 3087.
Months Supply inventory is now 11.6 months in luxury sector for LA County compared against 5.3 months in May 2017. This factor can soften seller’s prices unless they are well-tuned to market dynamics. In short – listing price is key for quick uptake in today’s luxury market. Sellers should price “tightly” and will benefit from quicker and higher selling performance.
The holiday of love also falls in February, Valentine’s Day. Let your special someone know how you feel!
-Ernie
