By Jeffery Marino
Residential real estate in Northeast Los Angeles is a seller’s market like no other.
In November, the latest month with full sales data, both the number of homes for sale and the number of homes sold increased in NELA. Inventory rose by 7% year-over-year, boosted by a 34% increase in new monthly listings, while sales increased by 8% year-over-year. It was the third month in a row of rising inventory and sales.
And yet, through it all, home prices just kept climbing.
What’s going on?
In normal times, much of the activity seen from September through November would have taken place in the spring. But spring 2020 was the onset of the pandemic and many would-be home sellers, fearful of a market downturn, held off on listing their homes for sale.
Those homes began to hit the market in the fall, as it became apparent that the pandemic was not putting downward pressure on residential real estate.
In fact, competition for high-dollar NELA homes has been fiercer than ever.
In November, the median days-on-market in NELA was 42, compared to 51 days in November 2019. The median sale price was $910,000, up 10% compared to November 2019. The average sale-to-list ratio — a measure of how much buyers paid relative to the asking price — was 103.7%, a record for the month of November in data dating back to 2012, when Redfin began tracking the sale-to-list metric. A high sale-to-list ratio signifies a competitive market in which multiple offers drive up the price of a home.
Competition in NELA real estate in November was especially stiff in Eagle Rock, where the sale-to-list ratio was 105.3%, an increase of 3.3 percentage points from November of last year.
Sale prices in Eagle Rock increased 13% year-over-year, hitting a median of $990,000.
The supply of homes in NELA is up, but demand for homes is up by even more. The result is ever higher prices.