Now that 2017 is in the books, we have tallied the final numbers this past quarter. Q4-2017 proved to be a pleasant conclusion to a wildly successful year in Los Angeles real estate, where sellers reaped the greatest benefits. Low inventory continues to demand steep sale prices, and based on the numbers we see, this success may very well continue throughout 2018. Out of the 51 areas surveyed, we are seeing 35 areas of growth (13 of which were significant) and 15 areas of decline (3 of which were significant).
Instead of looking exclusively at areas with the greatest improvement, today we are looking at the areas with greater statistical significance. Thus, here are the top five areas with the greatest improvement in sales volume, coupled with the highest number of closed sales:
1. Metropolitan Southwest (3 more homes sold, 21% increase)
Out of all areas in the top 5, Metropolitan Southwest saw the biggest growth in sales volume with the smallest growth in closed sales. This is a testament to the increase in property values for the area. Although sale prices aren’t anywhere near the million-dollar mark, they continue to climb steadily with each quarter that passes, and we have no reason to believe that this trend will change in the near future.
2. Sunset Strip / Hollywood Hills West (24 more homes sold, 29% increase)
Despite reports that the Sunset Strip is struggling to maintain its flair, the Sunset Strip / Hollywood Hills West area was one of the most dominant residential markets in LA this past quarter, with 112 single-family homes sold. With breathtaking views and a top-performing elementary school, it’s easy to see why this area is a hotspot for single-family homes.
3. Mid Los Angeles (13 more homes sold, 32% increase)
Mid Los Angeles sold a total of 99 single-family homes in the 4th quarter. With major development underway in the downtown area, Mid-City is beginning to attract more attention from West LA developers. Thus, we should expect this growth to continue in years to come.
4. Silver Lake / Echo Park (10 more homes sold, 40% increase)
Sales activity in the Silver Lake / Echo Park area continues to grow, with 96 single-family homes sold this past quarter. Buyers in this area will be pleased to know that several improvements are in the works for the Silver Lake Recreation center and Reservoir Complex, including the opening of the South Dam of the Silver Lake Reservoir, the planting of 30 new trees, a new fence for the dog park, and a new pedestrian-activated warning beacon.
5. Westchester (12 more homes sold, 32% increase)
Westchester came out swinging in Q4-2017 with 91 single-family homes sold and an additional $29 million in sales volume compared to Q4-2016. As we’ll see in a future market climate map, this is not the result of declining property values – Westchester has seen growth in that area as well. Throughout 2018, it’ll be wise for agents, sellers, and developers to keep their eyes on this up-and-coming area.
Here is the full breakdown: