November is in full swing and we all may be slightly uneasy expecting this to be a disruptive time for real estate in 2020. The good news is that even with many unknown implications post-election, historically the impact of elections on real estate has not been significant as the dynamics of what drives supply and demand is generational over the short term. That being said, let’s get right into this month’s real estate market update.
In Los Angeles, inventory levels remain low and are projected to stay that way through November. In neighborhoods such as Marina Del Rey, Venice, and Playa Vista, the comparison from last year's inventory has been a 5-20% decrease. We do predict a rise in inventory as we approach the year-end that will lead us into a larger supply of homes going into 2021.
When taking a look at Days On Market (DOM), homes recently have been flying off the market. Compared to this time last year in Los Angeles, homes are selling at a 25% faster rate. Demand and transaction pace continue to remain strong, but we do expect this to slow down and normalize through the last two months of 2020. That being said, we can expect DOM to increase slightly through December and begin to decrease again with the arrival of the new year’s inventory.
Finally, because we are in a seller's market- home sales are continuing to outstrip supply and remain at a high point. From last year we see a 23% increase in medium home price and expect to see prices remain strong throughout this month and going into year's end.