How’s The Market Playa del Rey?
The #1 question realtors get asked is “how’s the market?” It’s such a big question. I almost never know where to start. Different people think different criteria tell the story. Below are six that I think best answer the question, along with trend graphs as of September 30th. All graphs depict a 12 month rolling average to smooth out the trendlines.
In Playa del Rey, there were 108 new single family listings in September compared to 105 listings in August, up dramatically from a year ago at 72 listings. As you can see from the trend graph below, Playa del Rey has been on a steady climb UP for the last two years, with the last year on a steep slope. There aren’t that many single family homes in Playa. Looks like people are cashing out in a big way.
Months Supply is a good indicator of a sellers’ versus a buyers’ market. Typically, a market that favors sellers has less than six months of supply (listings). Playa del Rey has been ratcheting up in the last year and currently sits at 5.1 months, the highest in Silicon Beach (not a surprise with all the listings that have come on the market in the last year). As Playa del Rey starts flirting with that six month marker, you’ll find that buyers can start getting more demanding and may be able to ask for concessions on price or terms, although it’s hard to say whether sellers are ready to hear this yet.
Price reductions are a mixed bag as far as being an indicator of any trend, but people still love to talk about this metric.
Sometimes a seller starts out unrealistic and has to “right-price.” Sometimes the agent is from out of area and doesn’t know that Playa del Rey has more condos than single family homes. It takes some real analysis of the price reductions to see if there is a broader trend working.
So far this month, we’ve seen 2 price reductions in Playa del Rey. Contact us if you want the list. Consistent with the onset of a buyer’s market, Playa del Rey homes are starting to sell slightly below list price, as you can see from the graph below.
Price Per Square Foot
The average price per square foot is slipping in Playa del Rey as you would expect with a shifting market, currently hanging out at $686/ft for single family homes. Different property types and bed/bath configurations likely have their own average PPSF. Contact us if you want to see a graph for a particular property type or bed/bath configuration.
Days On Market
Days on market can be an indicator of demand. If DOM is trending down, properties are moving faster (higher demand). Single family homes in Playa del Rey are still a hot ticket, despite the other shifts we’re seeing. Homes are on the market an average of 31 days.
Back on Market
Zero single family homes have fallen out of escrow in Playa del Rey in the last seven days.
Distressed Properties In Playa del Rey
There is currently one property for sale with a Notice of Default outstanding. Contact us for details.
Assumptions & Other Markets
This report was written for single family homes in the Playa del Rey community of Silicon Beach. Similar reports can be generated on request for neighborhoods or property types withing Playa del Rey 90293. For example, in Playa there are significant metric differences between single family homes and condos. Contact us for custom reports.
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