(Los Angeles, CA – July 31, 2012) – Polaris Group’s monthly Market Report for Los Angeles, paints a portrait of sustained recovery in the multi-family residential for-sale market sector, with resale pricing increasing overall by 4.7%; unsold inventory of new residences down 47.3% from 2011; and a dearth of new product under development, with 73.8% of 2,531 units available either sold or under contract to be sold, with only an additional 425 new units under construction in the region.
According to Polaris Group Executive Vice President of Sales and Marketing, Rhonda Slavik, “Yes, we are beginning to experience a sustained recovery in the high-density residential marketspace. The market has been cautious about commencing development on new product, and as such, we are going to soon experience a shortage of available new residential product.” Slavik went on to cite that in addition to new product, “The resale market in Los Angeles is also registering its third consecutive year of total transaction volume growth. While the median price isn’t where we’d like to see it yet, the window is closing on buyers being able to obtain exceptional values in multi-family product.”
Slavik noted that behind the improving sales numbers, are projects that are tailoring their floor plans, amenities and finishes to address the desires of today’s condo buyer in their particular market. In addition to working with developers to market and sell their product, Polaris Group also leverages their extensive research to provide invaluable counsel on what’s trending in terms of product development (product mix, materials, floor plans, etc); all backed by surveys and market statistics.
The Los Angeles Market Report for July also cites the Downtown Los Angeles submarket as experiencing the greatest decrease in unsold inventory; down 60% from the same period in 2011. The Westside submarket came in second, with a 51.5% reduction in unsold new home inventory.
To obtain the full Los Angeles Market Report for July at no charge, call Rhonda Slavik directly at 415/308-2194, or go to www.polarisgroup.com.
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