PARTNERS TRUST QUARTERLY LOS ANGELES RESIDENTIAL MARKET REPORT 2016 | Q1
Q1 2016 MARKET STATS
/
PARTNERS TRUST
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LOS ANGELES & WESTSIDE
4
COASTAL COMMUNITIES
5 THE HILLS
8 WESTSIDE The first quarter of 2016 has been a tale of a market that continues to shift and expand. While what is called buying season traditionally begins in spring across the country, it always starts a little early in Southern California where we don’t have to worry about the weather. This year, however, the season kicked off earlier than usual, leading us to have our busiest January ever. While we have seen some slowing at the high end of the market, most of the real estate market in Los Angeles is highly active and highly competitive. An L.A. Times article about the housing scramble referenced writing deals on the hoods of cars, and sometimes that is a reality as we move swiftly to secure homes for our clients. Recently Freddie Mac predicted that 2016 could be the best year for the real estate market during this decade. Sales, housing starts, and housing prices are all expected to rise, reaching their highest point since 2006. Mortgage rates are expected to remain low throughout the year and continued job growth may ease the afford ability crunch. The Fed has indicated that there will likely be two modest hikes in the interest rate in 2016 as inflation rises and the economic fundamentals remain solid.
supply is the historical average). Partners Trust Associates continue to see strong competition for entry-level and move-up homes with multiple offers common. There is some slowing at the high-end of the market as homes over $10 million linger on the market. In the Bel Air/Holmby Hills area for example, sales were down -46.67% and prices fell -22.21%. Neighborhoods where prices have continued to increase dramatically include Los Feliz, where the average sold price is now $2,019,572, up 34.54%; Santa Monica where the average sold price is now $3,291,342 up 26.69%, year over year; the Beverly Hills Post Office area where the average sold price clocked in at $3,453,303, up 40.49%. On the Eastside, including Pasadena and surrounding areas, prices have mostly stabilized but days on market have continued to fall, down to an average of 48.7 days. The market in these areas is highly competitive as low inventory continues to curtail sales.
Employment is increasing. The unemployment rate for February was 4.9% nationwide and in Los Angeles county it was down to 5.6%, the lowest it has been in more than eight years. Local employers remain bullish on hiring. A Los Angeles CFO survey by recruiting firm Robert Half reported that 22% of local chief financial officers anticipate their company will create new jobs and 62% plan to hire for open roles. The latest report from the LA Economic Development Corporation showed that Los Angeles County should continue to add jobs at a 1.7% annual rate this year and personal income is expected to grow by 4.4%. The biggest challenge that the real estate industry continues to face is low inventory. According to the California Association of Realtors®, the statewide inventory level hovers under the five-month mark (six months
This report includes a special feature on the Chinese investor. While there has been increased difficulty in getting money out of China, we still see a pool of active investors who are looking for real estate in Los Angeles and surrounding areas. Our team in Shanghai networks weekly with buyers who are looking at all types of properties in the United States and is hosting buyer tours in the US. The real estate market varies neighborhood by neighborhood and even street by street. Each home is individual. For an up-to-date assessment of your home’s value, you can request a consultation at any time.
SAN GABRIEL VALLEY
9
HOLLYWOOD HILLS & MID-CITY
24
12
PASADENA
WESTSIDE/SOUTH
25
13
LA CAÑADA FLINTRIDGE
METRO LOS ANGELES
28
NORTHEAST LOS ANGELES
SAN FERNANDO VALLEY
29
EAST SAN GABRIEL VALLEY
18 SAN FERNANDO VALLEY WEST OF 405
SOUTH BAY
34
SAN FERNANDO VALLEY
MANHATTAN BEACH & ADJACENT COMMUNITIES
19
SPECIAL SECTIONS
SAN FERNANDO VALLEY EAST OF 405
35
MALIBU GRAND OPENING
Sincerely yours,
37
Lisa Kirshner Partner Partners Trust Real Estate Brokerage & Acquisitions
NEIGHBORHOODS TO WATCH
39
CHINA: A GLOBAL BRIEFING
Q1 2016 MARKET STATS
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PARTNERS TRUST
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Q1 2016 MARKET STATS
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PARTNERS TRUST
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LOS ANGELES & WESTSIDE
Q1 2016 MARKET STATS
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Coastal Communities Santa Monica & Adjacent Communities
Number of Sales
Malibu
Malibu Beach
Marina Del Rey
Pacific Palisades
Palms - Mar Vista
Santa Monica
Topanga
Venice
Westchester
First quarter Santa Monica prices rose 14.29%
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
39
39
0.00%
$2,531,490
$2,533,697
0.09%
151
104
-31.13%
CONDO
9
11
22.22%
$960,444
$777,511
-19.05%
86
127
47.67%
SFR
7
12
71.43%
$5,191,071
$8,659,333
66.81%
206
172
-16.50%
CONDO
0
2
N/A
$0
$1,415,000
N/A
0
63
N/A
SFR
15
13
-13.33%
$2,053,377
$1,271,462
-38.08%
63
65
3.17%
CONDO
62
52
-16.13%
$1,001,383
$961,512
-3.98%
68
87
27.94%
SFR
57
57
0.00%
$3,427,109
$3,330,364
-2.82%
66
65
-1.52%
CONDO
12
18
50.00%
$909,083
$940,267
3.43%
72
62
-13.89%
SFR
62
69
11.29%
$1,232,700
$1,362,717
10.55%
58
50
-13.79%
CONDO
21
19
-9.52%
$566,070
$586,523
3.61%
54
45
-16.67%
SFR
42
48
14.29%
$2,597,971
$3,291,342
26.69%
52
53
1.92%
CONDO
108
87
-19.44%
$1,093,777
$1,188,927
8.70%
65
50
-23.08%
SFR
15
20
33.33%
$1,138,920
$1,067,346
-6.28%
123
113
-8.13%
CONDO
0
1
N/A
$0
$439,000
N/A
0
8
N/A
SFR
38
45
18.42%
$1,812,526
$1,922,944
6.09%
70
60
-14.29%
CONDO
12
7
-41.67%
$1,210,667
$1,660,000
37.11%
51
79
54.90%
SFR
52
57
9.62%
$1,002,090
$1,096,037
9.38%
64
48
-25.00%
CONDO
4
11
175.00%
$498,475
$501,364
0.58%
38
44
15.79%
for single-family residences while prices rose 26.69% to over $3.29 million. In nearby Venice, prices were up 18.42% and the average sold price for single-family residences rose over 6% to $1.92 million.
Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
Q1 2016 MARKET STATS
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The Hills Beverly Hills & Adjacent Communities
Number of Sales
Beverly Hills
Beverly Hills P.O.
Bel Air - Holmby Hills
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
33
40
21.21%
$5,962,548
$5,502,956
-7.71%
105
81
-22.86%
CONDO
32
32
0.00%
$1,418,860
$1,269,645
-10.52%
94
69
-26.60%
SFR
28
25
-10.71%
$2,458,071
$3,453,303
40.49%
101
85
-15.84%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
45
24
-46.67%
$4,735,044
$3,683,458
-22.21%
107
101
-5.61%
CONDO
4
0
N/A
$786,875
$0
N/A
140
0
N/A
Single-family residence sales in Beverly Hills rose 21.21% in the first quarter and days on market fell over 20%. For both condos and single-family residences, prices fell slightly.
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The Westside Beverlywood & Adjacent Communities
Number of Sales
Beverlywood
Brentwood.
Cheviot HillsRancho Park
WestwoodCentury City
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
45
46
2.22%
$993,067
$1,280,467
28.94%
57
56
-1.75%
CONDO
14
10
-28.57%
$685,143
$685,240
0.01%
58
47
-18.97%
SFR
33
41
24.24%
$3,312,292
$2,775,155
-16.22%
71
85
19.72%
CONDO
45
60
33.33%
$749,863
$1,026,071
36.83%
75
68
-9.33%
SFR
19
19
0.00%
$1,547,079
$2,088,443
34.99%
80
86
7.50%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
26
42
61.54%
$2,178,288
$2,237,474
2.72%
68
40
-41.18%
CONDO
114
115
0.88%
$998,914
$1,126,396
12.76%
78
76
-2.56%
Single-family residences in Westwood continue to sell quickly. Days on market dropped over 40% to 40 days as sales rose 61.54%. In Brentwood, sales are still booming with single-family residence sales up 24.24% and condo sales up 33.33%.
Q1 2016 MARKET STATS
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Days on Market
Q1 2016 MARKET STATS
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Hollywood Hills & Mid-City Hollywood Hills & Adjacent Communities
Number of Sales
Beverly Center - Miracle Mile
Hancock Park - Wilshire
Hollywood Hills East
Sunset Strip - Hollywood Hills West
West Hollywood
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
39
41
5.13%
$1,540,769
$1,716,695
11.42%
57
49
-14.04%
CONDO
24
19
-20.83%
$699,954
$679,053
-2.99%
75
58
-22.67%
SFR
62
53
-14.52%
$1,616,004
$1,988,394
23.04%
63
68
7.94%
CONDO
38
36
-5.26%
$551,362
$499,047
-9.49%
63
65
3.17%
SFR
26
29
11.54%
$1,242,455
$1,379,399
11.02%
90
63
-30.00%
CONDO
11
8
-27.27%
$431,000
$466,025
8.13%
49
65
32.65%
SFR
93
108
16.13%
$2,500,750
$2,791,329
11.62%
80
82
2.50%
CONDO
22
21
-4.55%
$1,288,051
$582,667
-54.76%
67
51
-23.88%
SFR
35
31
-11.43%
$1,846,239
$1,630,423
-11.69%
62
56
-9.68%
CONDO
102
84
-17.65%
$696,755
$736,272
5.67%
72
57
-20.83%
The Beverly Center-Miracle Mile area maintains a steady growth with sales up 5.13% and the average sold price up 11.42% to $1,716,695. In the Sunset Strip-Hollywood Hills West area, single-family residence sales rose by 16.13% with an average sold price of $2.791 million, up 11.62%.
Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
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Q1 2016 MARKET STATS
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The Westside | South Culver City & Adjacent Communities
Number of Sales
Culver City
Inglewood
Ladera Heights
Park Hills Heights
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
42
39
-7.14%
$1,010,604
$1,043,756
3.28%
55
57
3.64%
CONDO
62
40
-35.48%
$476,644
$539,013
13.09%
52
48
-7.69%
SFR
47
43
-8.51%
$396,856
$428,147
7.88%
61
45
-26.23%
CONDO
29
29
0.00%
$206,701
$253,576
22.68%
64
29
-54.69%
SFR
7
13
85.71%
$818,143
$983,427
20.20%
52
90
73.08%
CONDO
0
1
N/A
$0
$398,670
N/A
0
95
N/A
SFR
98
103
5.10%
$476,104
$577,533
21.30%
59
47
-20.34%
CONDO
20
15
-25.00%
$306,499
$313,400
2.25%
62
38
-38.71%
Culver City prices have stabilized with the average sold price rising just 3% to $1,043,756. In Inglewood, increased interest caused by the announcement of a new stadium may have contributed to the rise in the average sold price of single-family residences, up 7.88% to $428,147, while days on market fell over 26%.
Q1 2016 MARKET STATS
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Days on Market
Q1 2016 MARKET STATS
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Metro Los Angeles Downtown Los Angeles & Adjacent Communities
Number of Sales
Downtown L.A.
Hollywood
Los Feliz
Silver Lake - Echo Park
Average Sold Price
Days on Market
Celeb-friendly Los Feliz saw another price jump with the average sold price for single-family residences coming in at $2.019 million while sales rose 12.5%.
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
28
23
-17.86%
$342,491
$325,817
-4.87%
85
96
12.94%
In Silver Lake-Echo Park, the average sold price
CONDO
107
62
-42.06%
$657,988
$777,506
18.16%
72
84
16.67%
crested the $1 million mark, up 20.55% to over $1.022
SFR
20
25
25.00%
$1,245,583
$1,064,220
-14.56%
70
59
-15.71%
million as sales rose 9.21%.
CONDO
22
25
13.64%
$777,784
$629,341
-19.09%
75
65
-13.33%
SFR
48
54
12.50%
$1,501,052
$2,019,572
34.54%
70
73
4.29%
CONDO
12
7
-41.67%
$502,833
$586,057
16.55%
50
64
28.00%
SFR
76
83
9.21%
$847,839
$1,022,107
20.55%
54
58
7.41%
CONDO
7
6
-14.29%
$549,000
$650,650
18.52%
50
94
88.00%
Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
Q1 2016 MARKET STATS
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Q1 2016 MARKET STATS
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PARTNERS TRUST
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SAN FERNANDO VALLEY
Q1 2016 MARKET STATS
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San Fernando Valley West of the 405 Agoura & Adjacent Communities
Number of Sales
Agoura
Calabasas
Chatsworth
Encino
Hidden Hills
Northridge
Tarzana
Westlake Village
Woodland Hills
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
70
65
-7.14%
$886,151
$915,370
3.30%
87
91
4.60%
CONDO
36
32
-11.11%
$401,396
$411,622
2.55%
75
57
-24.00%
SFR
43
57
32.56%
$1,530,715
$1,961,956
28.17%
118
114
-3.39%
CONDO
24
15
-37.50%
$433,013
$430,650
-0.55%
89
79
-11.24%
SFR
58
58
0.00%
$602,685
$766,535
27.19%
86
75
-12.79%
CONDO
29
30
3.45%
$348,929
$354,774
1.68%
77
47
-38.96%
SFR
88
103
17.05%
$1,357,907
$1,387,158
2.15%
69
72
4.35%
CONDO
48
47
-2.08%
$368,501
$375,340
1.86%
61
50
-18.03%
SFR
8
6
-25.00%
$2,252,500
$3,895,833
72.96%
69
76
10.14%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
143
140
-2.10%
$632,581
$648,462
2.51%
70
61
-12.86%
CONDO
38
26
-31.58%
$368,129
$392,535
6.63%
65
44
-32.31%
SFR
70
64
-8.57%
$1,055,936
$1,096,872
3.88%
84
69
-17.86%
CONDO
43
40
-6.98%
$307,105
$336,332
9.52%
58
77
32.76%
SFR
63
62
-1.59%
$1,822,798
$1,297,420
-28.82%
70
87
24.29%
CONDO
45
38
-15.56%
$572,562
$543,436
-5.09%
72
84
16.67%
SFR
154
125
-18.83%
$734,876
$825,169
12.29%
80
71
-11.25%
CONDO
42
57
35.71%
$369,462
$392,931
6.35%
64
58
-9.38%
Blame it on the Kardashians? Sales in Calabasas continue to climb, up 32.56% in the first quarter as the average sold price for a single-family residence elevated over 28% to $1,961,956.
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Days on Market
Q1 2016 MARKET STATS
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San Fernando Valley East of the 405 Sherman Oaks & Adjacent Communities
Number of Sales
Burbank
Sherman Oaks
Studio City
Toluca Lake
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
110
106
-3.64%
$721,471
$777,026
7.70%
54
53
-1.85%
CONDO
62
38
-38.71%
$484,800
$499,775
3.09%
67
58
-13.43%
SFR
118
124
5.08%
$1,116,604
$1,294,749
15.95%
68
61
-10.29%
CONDO
82
49
-40.24%
$467,532
$492,492
5.34%
54
59
9.26%
SFR
56
58
3.57%
$1,231,888
$1,629,813
32.30%
66
68
3.03%
CONDO
43
46
6.98%
$497,255
$575,620
15.76%
65
72
10.77%
SFR
20
14
-30.00%
$1,561,366
$1,788,214
14.53%
77
72
-6.49%
CONDO
17
13
-23.53%
$484,412
$586,100
20.99%
85
105
23.53%
Studio City sales saw another price spike in the first quarter of the year as the average sold price came in over $1.62 million, up 32.3%. Sherman Oaks is also showing signs of market heat with sales rising 5.08% for single-family residences while the average sold price was up 15.95% to over $1.294 million. Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
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Q1 2016 MARKET STATS
/
PARTNERS TRUST
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SAN GABRIEL VALLEY
Q1 2016 MARKET STATS
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Pasadena Pasadena & Adjacent Communities
Number of Sales
Alhambra
Altadena
Pasadena
San Gabriel
San Marino
South Pasadena
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
49
33
-32.65%
$613,942
$603,433
-1.71%
57
61
7.02%
CONDO
14
18
28.57%
$399,824
$455,028
13.81%
67
55
-17.91%
SFR
84
69
-17.86%
$720,659
$832,696
15.55%
64
61
-4.69%
CONDO
1
0
N/A
$289,000
$0
N/A
34
0
N/A
SFR
193
177
-8.29%
$1,032,107
$961,605
-6.83%
64
55
-14.06%
CONDO
84
94
11.90%
$640,482
$606,579
-5.29%
69
59
-14.49%
SFR
48
41
-14.58%
$757,379
$836,288
10.42%
48
62
29.17%
CONDO
1
12
1100.00%
$342,000
$441,707
29.15%
24
59
145.83%
SFR
22
32
45.45%
$2,952,404
$2,771,924
-6.11%
41
83
102.44%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
22
21
-4.55%
$1,132,095
$1,081,459
-4.47%
42
57
35.71%
CONDO
8
6
-25.00%
$579,250
$582,648
0.59%
35
35
0.00%
Properties in Pasadena continue to move briskly with days on market down over 14% for both condos and single-family residences. In Pasadena, condo sales rose 11.9% while single-family home sales were down -8.29% amidst price stabilization.
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Days on Market
Q1 2016 MARKET STATS
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PARTNERS TRUST
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La Cañada Flintridge La Cañada Flintdridge & Adjacent Communities
Number of Sales
Atwater
Glendale
La Canada Flintridge
La Crescenta/Glendale/ Montrose/Sparr Heights
Sunland/Tujunga
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
10
14
40.00%
$681,340
$777,493
14.11%
69
48
-30.43%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
116
50
-56.90%
$793,316
$799,043
0.72%
53
55
3.77%
CONDO
56
83
48.21%
$391,309
$450,961
15.24%
71
58
-18.31%
SFR
34
52
52.94%
$1,920,497
$1,748,032
-8.98%
57
53
-7.02%
CONDO
1
0
N/A
$485,000
$0
N/A
56
0
N/A
SFR
68
59
-13.24%
$740,521
$762,942
3.03%
54
48
-11.11%
CONDO
7
19
171.43%
$399,093
$382,947
-4.05%
52
45
-13.46%
SFR
85
71
-16.47%
$476,457
$532,742
11.81%
52
56
7.69%
CONDO
5
3
-40.00%
$287,700
$332,967
15.73%
91
47
-48.35%
A hot market shows no signs of abating. Sales leaped up nearly 53% for single-family homes while the average sold price came in at $1.748 million. In nearby Glendale, the condo market provides an excellent entry point into the market with sales up 48.21% and an average sold price of $450,961, up 15.24% year over year.
Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
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Northeast Los Angeles Eagle Rock & Adjacent Communities
Number of Sales
Eagle Rock
Glassell Park
Highland Park
Montecito Heights
Monterey Hills
Mount Washington
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
35
52
48.57%
$700,120
$804,858
14.96%
36
49
36.11%
CONDO
1
0
N/A
$186,500
$0
N/A
207
0
N/A
SFR
28
28
0.00%
$584,076
$741,059
26.88%
49
51
4.08%
CONDO
1
3
200.00%
$668,847
$638,333
-4.56%
2
50
2400.00%
SFR
59
52
-11.86%
$603,483
$593,565
-1.64%
56
60
7.14%
CONDO
4
2
-50.00%
$279,500
$341,250
22.09%
20
21
5.00%
SFR
9
7
-22.22%
$615,000
$604,143
-1.77%
36
46
27.78%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
11
4
-63.64%
$382,000
$632,750
65.64%
83
73
-12.05%
CONDO
20
18
-10.00%
$333,550
$371,086
11.25%
68
43
-36.76%
SFR
31
25
-19.35%
$695,280
$764,300
9.93%
79
61
-22.78%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
In Northeast Los Angeles, prices are still on the increase, up 26.88% to an average of $741,059 in Glassell Park, up 14.96% in Eagle Rock to $804,858, and up 9.93% to $764,300 in Mount Washington.
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Days on Market
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East San Gabriel Valley Arcadia & Adjacent Communities
Number of Sales
Arcadia
Azusa
Bradbury
Monrovia
Monterey Park
Sierra Madre
Average Sold Price
Days on Market
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
82
85
3.66%
$1,606,261
$1,522,902
-5.19%
69
77
11.59%
CONDO
22
23
4.55%
$578,654
$612,774
5.90%
63
75
19.05%
SFR
53
53
0.00%
$415,057
$472,444
13.83%
75
67
-10.67%
CONDO
29
18
-37.93%
$283,240
$303,178
7.04%
50
44
-12.00%
SFR
7
4
-42.86%
$1,513,697
$1,088,825
-28.07%
46
131
184.78%
CONDO
0
0
N/A
$0
$0
N/A
0
0
N/A
SFR
54
56
3.70%
$633,252
$700,317
10.59%
55
53
-3.64%
CONDO
15
13
-13.33%
$402,333
$421,238
4.70%
60
70
16.67%
SFR
43
46
6.98%
$642,342
$619,932
-3.49%
70
65
-7.14%
CONDO
20
22
10.00%
$403,983
$468,298
15.92%
56
52
-7.14%
SFR
24
18
-25.00%
$972,196
$1,130,722
16.31%
40
47
17.50%
CONDO
3
1
-66.67%
$532,500
$450,000
-15.49%
60
108
80.00%
Arcadia’s rapid growth has slowed with sales rising 3.66% in the first quarter and the average sold price down -5.19% to $1,522,902 for single-family residences. Keep an eye on Monrovia where prices for single-family residences and condos both rose in the first quarter. Although the data used in this report hasbeen produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.
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SOUTH BAY Q1 2016 MARKET STATS
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South Bay Manhattan Beach & Adjacent Communities
Number of Sales
El Segundo
Hermosa Beach
Hawthorne
Manhattan Beach
Palos Verdes Estates
Playa Del Rey
Playa Vista
Rancho Palos Verdes
Redondo Beach
Rolling Hills Estates
People can’t get enough of the Manhattan Beach lifestyle. Sales rose another 20.4% and the average
Torrance
Average Sold Price
TYPE
2015
2016
% CHANGE
2015
2016
% CHANGE
2015
2016
% CHANGE
SFR
18
15
-16.67%
$973,522
$1,420,906
45.96%
52
58
11.54%
CONDO
7
1
-85.71%
$466,643
$569,990
22.15%
101
7
-93.07%
SFR
27
21
-22.22%
$2,444,020
$2,039,750
-16.54%
62
54
-12.90%
CONDO
4
8
100.00%
$826,500
$744,875
-9.88%
56
87
55.36%
SFR
45
62
37.78%
$487,850
$505,732
3.67%
46
55
19.57%
CONDO
6
10
66.67%
$552,192
$476,350
-13.73%
22
38
72.73%
SFR
49
59
20.41%
$2,288,900
$2,601,720
13.67%
44
74
68.18%
CONDO
1
0
N/A
$1,150,000
$0
N/A
143
0
N/A
SFR
34
38
11.76%
$2,370,803
$2,000,083
-15.64%
102
80
-21.57%
CONDO
3
2
-33.33%
$654,000
$675,000
3.21%
91
58
-36.26%
SFR
14
8
-42.86%
$1,718,571
$1,704,656
-0.81%
78
37
-52.56%
CONDO
23
24
4.35%
$500,391
$563,313
12.57%
46
44
-4.35%
SFR
5
0
N/A
$1,765,980
$0
N/A
29
0
N/A
CONDO
30
26
-13.33%
$875,241
$1,016,972
16.19%
57
45
-21.05%
SFR
73
75
2.74%
$1,196,950
$1,481,765
23.80%
67
77
14.93%
CONDO
10
16
60.00%
$506,750
$562,188
10.94%
57
90
57.89%
SFR
69
68
-1.45%
$1,140,998
$1,140,373
-0.05%
57
47
-17.54%
CONDO
23
30
30.43%
$527,109
$821,647
55.88%
64
61
-4.69%
SFR
11
13
18.18%
$1,579,818
$1,701,577
7.71%
95
88
-7.37%
CONDO
1
4
300.00%
$280,000
$340,750
21.70%
26
40
53.85%
SFR
148
171
15.54%
$682,784
$704,318
3.15%
50
52
4.00%
CONDO
47
37
-21.28%
$359,415
$383,959
6.83%
56
49
-12.50%
sold price climbed 13.67% to $2,601,720.
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Days on Market
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One of the things that makes Malibu so important to us is the community. Our Malibu Founding Partners and Associates aren’t just selling real estate in the area, they live here, they play here, they know the ins and outs of each neighborhood and delight in sharing that expertise, not just with their clients, but with anyone who wants to know more about the area.
Partners Trust Celebrates Malibu Grand Opening In Style As we expand our Partners Trust presence in Malibu, our physical footprint in the area needs to grow as well.
At the start of the year we moved into our new office and we recently put up our first Malibu billboard in Point Dume. The new billboard reinforces our commitment to the people we are proud to serve in Malibu and beyond. We celebrated both at an event that was full of the joy and collaboration that Partners Trust is known for. How many companies have a Marketing Manager who is also an expert DJ? We do, in our Marketing Manager Greg Lopez. Monrose Catering also provided sliders, lobster tacos, and our favorite Malibu cocktail, the P/t-tini. Our entire team showed up from offices as far away as Pasadena and La Cañada to celebrate. We were also honored to have members of the local press such as The Malibu Times, clients, and community members show up to take part in our celebration. The event was covered by The Malibu Times, which featured Founding Partners' Sarah Kosasky and Madison Hildebrand discussing the office's design and why it was important that it offer both the latest in technology and a welcoming, inviting space to work or visit. Special thanks to Malibu Chamber of Commerce Chair-Elect Kristine Bocchino and CEO Mark Persson for attending. It was wonderful to see members of the Malibu real estate community in attendance as well, including Malibu Association of Realtors® Past President, Meril May and Association Executive, Susan Manners. “I am truly delighted to share our new office with the community,” added Partners Trust Malibu Manager Sarah Kosasky. “The Malibu Country Mart location is in the perfect spot to meet with clients and welcome people new to the area. Friends, beautiful weather, and fun, this is what Malibu is and why people fall in love with living here.” Partners Trust Malibu is located at 23410 Civic Center Way, C1 Malibu, California 90265
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Neighborhoods To Watch SHERMAN OAKS
EAGLE ROCK
HAWTHORNE
WESTWOODCENTURY CITY
More and more people are discovering the charm of Sherman Oaks. New restaurants and retail space have brought new energy to this Valley community. Sales in the first quarter of 2016 were up 5.08% and the average price rose 15.95% to $1,294,749 while days on market fell to an average of 61 days.
Known as one of the hottest neighborhoods on the Eastside, Eagle Rock continues to be highly sought after. Sales rose dramatically over the first quarter of last year, up 48.57% with 52 single-family residences selling. The average sold price rose 14.96% to $804,858.
Manhattan Beach continues to notch up sales and escalating prices, as the average sold price for a single-family residence rose 13.67% to $2,601,720. But pay attention to nearby Hawthorne, a neighborhood on the rise. Sales rose 38% in the first quarter, while sales ticked up just a modest 3.7% to an average sold price of $505,732.
Condos are perennially popular in this convenient area but single-family residence sales rose 61.5% last quarter, with a relatively steady average sold price of $2,237,474 (up 2.72%) and days on market fell over 41% to just 40 days.
With average sold prices than many surrounding areas, Palms-Mar Vista is still attracting major buzz. Prices rose over 10% to an average sold price of $1,362,717 and sales were up 11.29%. Average days on market fell over 13% to 50 days.
The poke craze continues as Sweetfin Poke expands to Westwood. The latest restaurant from mega-restaurateur Alan Nathan offers signature bowls including mango albacore and spicy yuzu salmon. Westwood standard Napa Valley Grille recently reopened after a $2 million renovation that includes a private dining room and new lounge area.
Mar Vista is known for its excellent farmers’ market. New restaurants include Rustic Kitchen Market & Café, a charming spot on Centinela that offers comfort food as well as locally made gourmet items. A coming wine bar will host winemaker events. While you are in the area check out Mar Vista Art Department, a shop that also holds movie nights and crafting tutorials.
Local new restaurants include The Sherman, which has taken over the former Tipple & Brine spot and serves hearty fare including wild boar jambalaya, peri-peri chicken, and espresso-braised short ribs. Hollywood tequila bar Te’kila will soon be opening on Ventura Blvd.
The restaurant and bar scene continues to evolve in Eagle Rock and Highland Park. Craft Beer Cellar recently opened an Eagle Rock location and stocks a variety of craft beer in bottles from around the world. There is also beer on tap and a rotating schedule of food trucks. Sevan Abdessian’s much anticipated Recess recently opened in nearby Highland Park and may become the area’s hottest brunch spot.
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Fans of Culver City’s legendary Zam Zam Market rejoiced at the end of 2015 when the home of delicious biryani and kebabs made its new home in Hawthorne. Another reason to keep an eye on Hawthorne is the plan to turn the Hawthorne Plaza into an outdoor mall with residences and restaurants similar to Americana at Brand. Plans haven’t been finalized yet but this could help bring new life to the downtown area.
PALMSMAR VISTA
Q1 2016 MARKET STATS
MONROVIA
/
PARTNERS TRUST
As people head east looking for affordable real estate, more and more eyes are turning to the town of Monrovia. Sales were up just 3.7% in 2016 but the average sold price rose 10.59% to $700,317. Monrovia’s long history means there is a wide variety of housing stock in the area, including many older historic homes. Monrovia is known for the great local shops in old town. The city is set to get its own wine bar, The Saltner, which will offer wine flights by the glass and bottle as well as a retail sales. The Saltner will also offer Cicchetti, small plates of food designed to complement the wines being served.
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GENERAL ECONOMIC FEELING IN CHINA
China: A Global Briefing
"Volatility" and "Uncertainty" are the two best words to describe the general sentiment in China about its economy and the near future. On one hand, in January, the Chinese currency (called "RMB" within China and "CNY" or Chinese Yuan when traded offshore/ outside China) experienced a short-term rapid devaluation, — and while China’s revised forecast for 2016 sets the lowest economic growth target (at between 6.5% to 7%) in the past 26 years, the hard landing that many economists had predicted has still not happened. Policies are changing very fast. has reached never-before-seen levels
the sudden and quick response by
turn the RMB into a freely tradable
Changes were announced and are being
over the past six months. In fact,
private companies and even individuals
international currency. Managing these
implemented regarding:
some of the changes in policies were
to follow suit. So much money has
two seemingly contradictory policies
• Foreign currency control – in past three
a direct result of these unprecedented
flowed out of China in a short amount
is China’s true balancing act, which
months, a complete tightening on foreign
and unexpected levels of ODI.
of time, that the government in
ultimately has far-reaching implications
January further tightened regulations
on US real estate. Ultimately, the long-
restricting individuals’ capability and
term goal of internationalizing the RMB
ease of moving funds out of China,—
will lead to loosening of the policies
thereby directly affecting the real
and restrictions on currency exchange.
estate market in the US and California.
In fact, the lowering of the economic
exchange, especially for individuals. • Government spending – reduction in domestic
CHINA OUTWARD DIRECT INVESTMENT (ODI) 2016 FORECAST
spending, drastic lowering of foreign reserves
Fueled by uncertainty about China’s
to protect the value of the RMB, an increase in
domestic market, a devaluing RMB
overseas spending for state-owned enterprises
and the draw of more stable US and
under the One Belt One Road strategy.
overseas markets, in this first quarter
• Monetary policy and the internationalization
alone, China’s ODI is exceeding $54
of the RMB – while in the short-term, tightening
billion, following a historic high of
the amount that individuals can take out of
$118 billion in all of 2015. Who is
The restrictions on foreign currency
the country — a seemingly contradictory longer
doing this buying? The majority are
exchange further restrict the annual
term objective to make the RMB freely tradable
still state own enterprises, but private
limit of US $ 50,000 that each individual
internationally.
conglomerates are joining the action.
has to exchange funds. The practice
• Domestic real estate property tax law
While ChemChina (state-owned) is
of being able to collect larger amounts
amendments – reductions in property taxes
buying Swiss’ Syngenta for $43 billion,
by mobilizing relatives and friends
and the way they are collected and making
Haier, for example, has bid $5.4 billion for
and use their quotas has for the
real estate purchases in China’s bubble areas
GE’s appliances unit. For corporations
time being all but been eliminated.
(second – and third – tier cities) more enticing in
such as these it is evident that foreign
So has the capability to withdraw
the short-term.
currency control is not stopping their
cash overseas on ATMs by Chinese
• Sweeping changes in personal income tax —
shopping spree. Many of these firms
citizens, which was a loophole in the
All this within the context of lower economic
are trying to either buy before the RMB
system. However, these restrictions
growth targets and China’s overall change from
may further devalue or for similar
are expected to be short-lived. While
traditional reliance on manufacturing to higher
reasons, companies with high levels of
in the short-term, Chinese leaders
value service industries. It is no wonder that
foreign debt have been racing to pay
are trying to provide stability by
Individual and institutional investors alike are
off their debts in the last 6 months. A
reassuring investors and industries
trying to make sense of what all these
large portion of this overseas spending
whose financial performance are
changes mean.
was anticipated, and even planned
tied to a stable relationship between
The general sense is that it remains wise wherever
by central government, resulting in
the RMB and the USD, by managing
and whenever possible to hedge bets and invest in
many of the state-owned enterprise
the outflow of RMB, at the same
overseas markets. Outward Direct Investment (ODI)
deals. What was not expected was
time China remains on its path to
growth target is a positive sign that
NEW LAWS AND POLICIES AFFECTING INVESTMENT AND LIQUIDITY
Q1 2016 MARKET STATS
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PARTNERS TRUST
central government planners can accept more modest, and therefore, more sustainable growth targets that in the past decade were too dependent on large-scale state-owned enterprises and not dependend enough on consumer spending. The internationalization of the RMB has already been set in motion. In addition to offshore CNY trading in Hong Kong, China has recently signed trade deals with the Middle East, Russia and other markets to gradually make the RMB freely tradable. The establishment of the Asian Infrastructure investment Bank (AIIB) in January 2016 is China’s direct response to the IMF, World Bank and Asian Development Bank as part of a strategy to increase the global influence of the CNY. The momentum towards a freely traded RMB/CNY is virtually unstoppable and more a matter of timing. When that happens, a potential floodgate of ODI by
/ 40
individuals becomes highly probable. The US and in particular the West Coast, remain the historical frontrunners as one of the first destination or such Investors. SUMMARY I.
In the short term, estimated next 6 to 12 months,
China’s domestic policy changes in real estate property tax structure and personal income tax, combined with the foreign currency limitations for individuals, are designed to motivate Chinese investors to look first at domestic second - and third - tier city markets and invest in the surplus of real estate there. II.
China’s investors, whether institutional or individual
have a continuing desire to invest overseas but are held back in short term by foreign currency limitations. III.
However, China’s currency, RMB/CNY inevitably
will become freely tradable. It is only a matter of time. How much time depends a lot on the complex factors of China’s own economy as well as macro-economic forces worldwide, the US interest rates, any possible instability following the US Presidential race etc, yet its estimated time frame is between one to three years. IV.
When China’s currency becomes freely tradable,
expect the floodgates to open. V.
US real estate companies best prepare for what
is anticipated to become a massive opportunity. Especially in California, which remains a top destination for Chinese investors.
Partners Trust China is located at 5/F Somekh Building, RockBund 149 Yuan Ming Yuan Road Shanghai, P.R. China 200002
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