Home of the Week: New architectural family compound in Mar Vista

Designed to float seamlessly from indoors to out, main home to guest house, 12662 Rose Avenue defines LA living at its elegantly easy best. This is an environment created for everything from quiet family times to memorable gatherings.

Within the main residence, a single sweeping space flows through living, dining and kitchen areas – and out through ten-foot glass pocket doors to the grassy yard, deck, pool and spa.

A key focus is the open kitchen,
defined by a fourteen-foot island with pull-up seating. Quartz countertops with
pop-up outlets, double sinks, designer appliances and a built-in refrigerated wine
closet combine to handle everything from grab-and-go breakfasts to big
entertaining.

Life moves effortlessly from the indoors to the magnificent backyard with its lush green lawn, 43-foot pool, and spa for eight.

A spacious wood deck with built-in BBQ offers plenty of space for a roomy dining table and lots of casual seating. From here – and from any other outdoor space in the compound – you can enjoy a theater-sized movie projected on the wall of the two-bedroom guest house.

A dramatic skylit staircase with glass bannisters leads up to three of the home’s five bedroom suites – each with its own view patio.

The master retreat features a room sized wood-paneled walk-in closet.

An outdoor staircase climbs to a magical firelit rooftop lounge surrounded by panoramic mountain, treetop and city lights views.

Like all the outdoor spaces, it’s in view of the huge movie screen. Other home amenities include a pre-wired and installed ring system, video cameras and speakers in each room, a large laundry room and a direct access garage.

The quiet Mar Vista neighborhood, just three bikeable miles from Venice Beach, is among the most sought-after locales on the Westside, with easy access to the shore, the studios, Beverly Hills and more.

It’s the ideal place for this warm and contemporary family world, listed by Laci Buller at $5,350,000.

California on track for longest job expansion in recorded history


economic-straight-talk
  • California added 19,400 jobs in May bringing the
    unemployment rate down to 4.2 percent, according to the latest
    report from the state Employment Development Department
    . The lowest
    unemployment rate, 4.1 percent, was seen in second half of 2018.
  • Current job growth is at a 111-month expansion —
    the second-longest since 113-month expansion of 1960s.
  • With 282,700 jobs added over the last year, the
    1.6 percent pace of employment growth lines up with the growth rate nationally.
    Still, California’s 19,400 jobs gain accounted for a lion’s share of national
    monthly job growth, contributing 26 percent.
  • While the state’s unemployment rate declined
    slightly in May, the driver is unfortunately declining labor force which
    declined by 49,800 in May, following a 51,800 decline in April. On an annual
    basis, labor force showed only a small improvement of 136,400 or 0.7 percent
    growth.
  • In May, 7 out of 11 industries added jobs, with
    largest gain in construction (12,800), suggesting increase in new home
    construction. The second largest gain was in leisure and hospitality, up 4,500
    jobs, and government, up 1,800 jobs. In annual comparison, there is a
    relatively consistent growth in education health services followed by
    professional and business services, and a loss in financial services.
  • Regionally, Los Angeles continued with the
    largest job gains adding 8,200 between April and May, with gains largely in
    leisure and hospitality, a seasonal gain that also reflects the strength of the
    area’s tourism industry. Employment services reflected another large gain, up
    4,600 jobs. Within construction’s gains, the largest relative increase was
    among building finishing contractors, up 4 percent over the month, and 15.2
    percent over the year. Information sectors, mostly driven by motion picture and
    sound recording, showed the largest monthly declines, while finance and
    insurance have seen the largest overall annual declines, down 3,400 jobs in
    total year-over-year. The region’s employment growth over the year remains
    focused in health care and social assistance, which account for about 30
    percent of the growth.
  • In the Bay Area, gains were broad based across
    the regions, and most regions saw the unemployment rate decline again falling
    below the year-ago bottom. In San Francisco-San Mateo region, up 7,100 jobs, monthly
    gains were led by accommodation and food services, construction, and financial
    services, with a loss in private education and health services. Over the year,
    the region gained 44,900 jobs.  
  • In Santa Clara-San Benito region, up 4,900 jobs,
    gains were also led by leisure and hospitality as summer seasonal hiring kicked
    in. The region also saw strong gains in information and professional services.
    Over the year, job gains in information and computer and electronic product
    manufacturing suggests the area continues to be a big draw for tech innovation.
  • Alameda and Contra Costa counties added 6,100
    jobs in April, with construction’s specialty trade contractors leading the
    gain. Over the year, the area added 19,100 jobs with over a third in health
    care and social assistance, followed by a similar gain in professional and
    business services
  • In Marin, Napa and Sonoma counties, unemployment
    rate also declined dropping to lowest rates since May 2018. However, falling
    unemployment rates are due to declining labor force which was down 0.6 percent
    in Sonoma year-over-year, down 1.2 percent in Napa, and mostly flat in
    Marin.   
  • Figure 1 summarizes annual changes in
    employment, number of jobs added in high-income sectors, and the share of total
    jobs that were high income jobs by region.
  • Column titled Percent in High Income Sectors
    illustrates how many of the jobs added in each region were in high income
    sectors, which include financial activities, professional and business
    services, and information sector. In San Francisco and San Jose metropolitan
    areas, about 50 percent of job growth is in high-income sectors which contrast
    notably other regions, particularly Los Angeles where the diverse economy still
    hasn’t gained traction with higher-income employment growth.

Figure 1

Notes:

East Bay Area includes Alameda and Contra Costa counties

Los Angeles includes Los Angeles County

San Francisco incudes San Francisco, Marin, and San Mateo counties

San Jose includes Santa Clara and San Benito counties

Los Angeles homebuyers take two steps forward and one step back


economic-straight-talk

Executive Summary

  • Total home sales in the greater central Los
    Angeles area were 2 percent below last May, following April’s upwardly revised
    2 percent year-over-year increase.

    • Sales between $2 million and $3 million saw a 6
      percent jump compared to last May, the first year-over-year increase following
      six months of double-digit declines, driven by East Valley, Eastern Cities
      (Arcadia and Monrovia), and Foothill Communities.
    • Home sales activity remains relatively stronger
      on the eastern side of Los Angeles and among homes priced below $1 million –
      including Eastern Cities, Foothill Communities (La Cañada Flintridge, La
      Crescenta – Montrose), East Valley (from Sherman Oaks to Glendale), and also
      South Bay.
  • For-sale inventory is up 10 percent
    year-over-year, a notable slowing from 20 to 30 percent increases seen during
    winter months.

    • Relatively larger for-sale inventory growth is
      seen in western parts of Los Angeles, including Mid City, Sunset East, Silicon
      Beach, and Brentwood, while inventory is aging without increase in new listings
      on the East Side, NELA, North Valley, and areas surrounding DTLA – days on
      market has increased relatively more, up 17 days YOY.
  • While demand for homes priced below $1 million
    remains solid, buyers are taking longer to make the purchase leading to longer
    days on market, up 7 days YOY to an average of 27 days.
  • Absorption of available inventory and the share
    of homes selling over the asking price improved markedly from winter lows with 36
    percent of homes sold over the asking price.
  • Home prices remain flat year-over-year with only
    Eastside, areas surrounding DTLA, South LA, and Mid City seeing an increase of
    6 to 8 percent above last year.
  • Home price forecast remains flat through 2020.

Detailed Analysis

Following a cheerful housing market activity for Los Angeles
in April, May home sales activity slowed some, though still maintaining the
momentum gained from the first quarter. Total home sales in the greater central
Los Angeles area were 2 percent below last May, following April’s upwardly
revised 2 percent year-over-year increase. Encouragingly, the rate of declines
has slowed considerably after double-digit declines seen in the first few
months of 2019 and 17 months of continual declines.

Overall, Los Angeles housing markets are experiencing an
interesting dichotomy with relatively pricier West Side markets continuing to
see relative weakness compared to last year and compared to some markets on the
Eastern side of the city. Buyers are moderately more active in Eastern Cities
(Arcadia and Monrovia), Foothill Communities (La Cañada Flintridge, La
Crescenta – Montrose), East Valley (from Sherman Oaks to Glendale), and South
Bay, than in Mid-City or West LA areas. The activity is largely driven by more
available inventory this spring, but also search for value as much of the
activity is seen with homes priced below $1 million, but also within higher
price ranges.

Taking the first five months of the year together, sales are
7 percent below last year, with all price ranges trending below last year and a
considerable decline in sales of homes above $2 million, which are down 14
percent year-over-year. Nevertheless, May offered some promise for homes priced
between $2 million and $3 million with a 6 percent jump compared to last May.
This was the first year-over-year increase following six months of double-digit
declines. Sales in that price range in May reached the highest level in at
least the last four years.

Sales of homes priced below $2 million posted a 2 percent decline
from last year, following April’s jump of 5 percent. Even with May’s small
decline, the market has seen a considerable improvement in sales compared to an
extended period of year-over-year declines seen in the last year.  

Figure 1 traces year-over-year changes in number of homes
sold by price range. While the volatility of monthly changes makes it difficult
to follow the trends, note the April increases in lower price ranges, and the
surge in sales between $2 million and $3 million compared to the beginning of
the year.

Figure 1
Year-over-year change in number of homes sold by price range

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

Considering the volatility in monthly changes, Table 1
summarizes 3-month average change (March-May) compared to last year. The East Side
of Los Angeles, including East Valley (up 58 home sales YOY), Foothill
Communities, and Eastern Cities, maintained relative strength compared to the
other areas, generally due to strong sales of homes priced below $1 million.
Sales below $1 million also fared well in the Greater Malibu region, Silicon
Beach and Hollywood Hills, while sales priced between $1 million and $2 million
fared well in West/Mid LA, North Valley, South Bay, NELA, and South of 210. The
strength of the sale activity is largely a function of existing inventory.

Regarding the jump in sales priced between $2 and $3 million
in May, the majority of the increase came from the East Valley, Eastern Cities,
and Foothill Communities. Note that only 7 percent of Los Angeles sales are
priced between $2 and $3 million.

Table 1

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

For-sale inventories continued to trend ahead of last year,
however the rapid growth rates seen at the beginning of the year have slowed
considerably and are back to rates seen at the same time last year. In other
words, after 20-30 percent increases in inventory during the winter months, the
rate of increase has slowed to an average of 10 percent. Figure 2 illustrates
year-over-year changes in for-sale inventories by price range, with percentages
denoted on the line tracing inventory below $1 million. Overall, while inventory
is trending 10 percent above last year for the last two months, inventory
priced between $2 and $3 million is growing at a higher rate in recent months,
up 14 percent in May.

Figure 2 Year-oer-year change in for-sale invetnory by price
range

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

Furthermore, Table 2 illustrates changes in inventory by
region, change in new listings, median days on market and change in days on
market from last year. A few trends are of note. Inventory increased and seems
to continue increasing (with increase in new listings) at the highest rate in many
western parts of Los Angeles, such as Mid City, Sunset East, Silicon Beach, and
Brentwood; while inventory is aging without increase in new listings on the
East Side, NELA, North Valley, and areas surrounding DTLA. Those are also areas
where days on market has increased relatively more, up 17 days.

Attractively priced and updated homes continue to sell at a
relatively faster pace in more affordable communities and East of Downtown
along with South Bay. Overall, homes are selling in 31 days on average, which
is 7 days longer than last year. The increase in days on market is predominantly
among lower priced homes with properties priced below $1 million taking 7 days
longer to sell, or 27 days on average, and those priced between $1-$2 million
taking 11 days, or 33 days on average. Homes priced beyond $2 million generally
taken longer to sell anyway, and there has not been a notable change from last
year.

Table 2

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

In addition, absorption of available inventory has improved
in spring, from around 15 percent in the first quarter to an average of 20
percent in May, suggesting buyers are cautiously optimistic in most areas. Figure
3 traces out 3-month moving average of absorption rate together with percent of
homes selling over the asking price. Both indicators suggest that buyer demand
has notably picked up in recent months, and while it still has not matched the
levels seen in last couple of years, it measures up with conditions seen in
2016. 

Figure 3 3-month moving average of absorption rate and share
of homes that sold over asking price

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

Table 3 summarizes absorption rates in May, year-over-year
change in absorption rate, share of homes that sold over the asking price, and
the change from last year. The change in absorption rates from last year
suggests that the number of homes sold from the available inventory is only 3.5
percent points below last year, when they were 24 percent. Although overall
absorption rate is down, some areas such as Eastern Cities, Foothill
Communities, East Valley, and areas surrounding DTLA have seen an increase in
absorption rates.

In addition, while the share of homes selling over the
asking price has declined by 13 percent points from 49 percent last year to 36
percent in May, Eastern cities (up 6 percent points), and Sunset East (up 11
percent points) have seen more homes selling over the asking price. A number of
West Side areas, such as Brentwood/Santa Monica/Palisades, West LA, and Hollywood
Hills, have seen buyer competition decline markedly from last year. Greater
Pasadena with Foothill Communities, NELA, and Sunset East continue to have determined
buyers and more than 50 percent of homes sell over the asking price.

Table 3

Source: Source: Terradatum, Inc. from data provided by local MLSes, June 7, 2019

Lastly, the question remains, where does the Los Angeles
housing market go from here? As discussed last month, median home price growth
remained flat overall since the beginning of the year and remained so in May,
meaning that following seasonal changes, it is back to the last year levels. A
few areas did see some price increases, mostly value-driven, compared to last
year — namely Eastside, areas surrounding DTLA, South LA, and Mid City where
prices are about 6 to 8 percent above last year. But generally, softening of
price growth has been anticipated at this point of the housing cycle. In the Pacific
Union Real Estate Economic Forecast 2020
, see Figure 4, our housing experts
discussed the expectations around the normalization path, suggesting that home
prices will reach a point in 2019 when they will remain flat for couple of
years. Unfortunately, softening of price growth may be alarming some buyers who
fear that housing market correction is inevitable and are waiting for sellers
to yield further and lower their prices. Nevertheless, while buyers may be
expecting price declines, declines are likely to be very minimal and unlikely
to resemble the correction that we saw in the last housing cycle. However, many
conditions are different than the last cycle. Most importantly, credit
conditions are significantly better than in the last cycle with the current
housing boom driven by exceptionally solid underwriting, many all-cash sales,
and almost negligible new construction growth, all of which suggest that the
correction path is looking notably different.

Figure 4

Source: Pacific Union International Real Estate Economic Forecast, Los Angeles to 2020

Compass SoCal May 2019 Real Estate Market Update

Overall
median home prices remained virtually unchanged in 2019. About half of communities
observed saw increases while the other half saw declines. The rate of increases
was relatively lower than seen at the same time last year. Generally, most of
the increases in home prices are driven by areas than remain relatively more
affordable while higher priced areas saw some declines from last year’s cyclical
peaks.

In
addition, the number of homes sold in Los Angeles communities showed some
improvement in recent months bringing the number of sales on par with last
year’s April-May period. Slower sales continue to characterize West Side
communities, while communities north, west and east of Pasadena saw some annual
pick up in sales. 

There
are generally more homes for sale available across the region and across price
ranges, however the rate of increase in available inventory has slowed some.
Availability of relatively more affordable homes has helped with increase in
sales over the last few months. Malibu continues to be impacted by lack of
homes for sale following last year’s fires.

Homes
are also selling at a faster pace than earlier in the year, though still slower
than at this time last year when strong buyer demand fueled faster sales. In
May, homes generally sold in 31 days, up from 24 days last May, though still
equaling historical averages. Relatively slower sales pace continues West of
405, but also within some markets that were relatively busy last year, such
DTLA and NELA.

Again, while buyers remain relatively more hesitant than last year, April and May have showed renewed enthusiasm among buyers who would love to make a purchase but are worried about a correction. Sellers who are willing to negotiate with buyers are having better luck selling their homes. An increasing number of homes were under contract over the last two months as well, compared to the same period last year.

Click here to see more Los Angeles region market statistics for May.

BEVERLY HILLS – HOLMBY HILLS


BRENTWOOD – SANTA MONICA – PACIFIC PALISADES


HOLLYWOOD HILLS


MALIBU BEACH COMMUNITIES


SILICON BEACH – MARINA AIRPORT


SUNSET EAST


WEST LA


WEST SIDE CENTRAL / MID-CITY


BALDWIN HILLS


SOUTH LA


EASTERN CITIES


FOOTHILL COMMUNITIES


GREATER PASADENA


SOUTH OF 210


EASTSIDE


NORTHEAST LA


DOWNTOWN LA


EAST VALLEY


NORTH VALLEY


WEST VALLEY


SOUTHBAY WEST

Click here to see more Los Angeles region market statistics for May.

Compass May 2019 Bay Area Real Estate Update

While overall
Bay Area pace of sales in May still trends 2 percent below last year’s levels,
some regions are starting to see sales pace pick up ahead of last year. Sales
below $1 million are up for the second month in a row after more than 20 months
of annual declines.


CONTRA COSTA COUNTY

At $1.3 million, May median sales price in Contra Costa County retrieved from the previous month’s high, but still continues to trend ahead of last summer. Days on market continued to trend lower with homes selling as fast as they did at the same time last year, averaging 18 days on the market. See Contra Costa County market statistics for May.

Defining Contra Costa County: Our real
estate markets in Contra Costa County include the cities of Alamo, Blackhawk,
Danville, Diablo, Lafayette, Moraga, Orinda, Pleasant Hill, San Ramon, and
Walnut Creek. Sales data in the adjoining chart includes single-family homes in
these communities.


EAST BAY

While retrieving slightly from the previous month’s peak, median home prices in the East Bay in May remained ahead of last year, at $1.2 million. The pace of sales activity also picked up again with homes selling on average in 17 days, only a day longer than the 16-day average seen last spring. See East Bay market statistics for May.

Defining the East Bay: Our real
estate markets in the East Bay region include Oakland ZIP codes 94602, 94609,
94610, 94611, 94618, 94619, and 94705; Alameda; Albany; Berkeley; El Cerrito;
Kensington; and Piedmont. Sales data in the adjoining chart includes
single-family homes in these communities.


MARIN COUNTY

At $1.45 million in May, Marin County median home prices continued the recent trend of monthly increases but still fall slightly short of last May. Pace of sales also picked up slightly from previous months though taking a few days longer at the same time last year. See Marin County market statistics for May.

Defining Marin County: Our real
estate markets in Marin County include the cities of Belvedere, Corte Madera,
Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San
Anselmo, San Rafael, Sausalito, and Tiburon. Sales data in the adjoining chart
includes single-family homes in these communities.


NAPA COUNTY

After a slow winter season, Napa County‘s May median sales price picked up pace again and increased 2.8 percent above last year, to a median of $725,000. Homes continued to sell at a faster pace, averaging 56 days before entering into a contract, only 2 days longer than last May. See Napa County market statistics for May.

Defining Napa County: Our real
estate markets in Napa County include the cities of American Canyon, Angwin,
Calistoga, Napa, Oakville, Rutherford, St. Helena, and Yountville. Sales data
in the adjoining chart includes all single-family homes in Napa County.


SAN FRANCISCO — SINGLE-FAMILY HOMES

Median home prices for single-family homes continued with a strong upward trend, bringing San Francisco‘s May median prices to $1,697,500. Number of homes under contract also continued to accelerate with almost 50 percent of homes available for sale being under contract. See San Francisco single-family-home market statistics for May.


SAN FRANCISCO — CONDOMINIUMS

At $1,250,000 median sales price, San Francisco condominiums trended only slightly below last year’s median price mostly reflecting the change in types of units being sold. Buyer activity remains strong and the share of units under contract picked up again, up 8.1 percent points year-over-year to 37.7 percent. See San Francisco condominium market statistics for May.


SILICON VALLEY

Silicon Valley median prices picked up in recent months and reached $3,350,000 in May, 1.5 percent ahead of last May. Buyers otherwise remain more restrained than last year, taking longer to decide to purchase, leading to an average of 27 days on market. See Silicon Valley market statistics for May.

Defining Silicon Valley: Our real
estate markets in Silicon Valley include the cities and towns of Atherton, Los
Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east of
U.S. 101), Palo Alto, Portola Valley, and Woodside. Sales data in the adjoining
chart includes all single-family homes in these communities.


Mid-Peninsula Subregion

The median sales price in the Mid-Peninsula continued to trend lower in May compared to last year. Homes under contract were down 6.3 percent with average days on market 10 days slower. See Mid-Peninsula market statistics for May.

Defining the Mid-Peninsula: Our real
estate markets in the Mid-Peninsula subregion include the cities of Burlingame
(excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo
(excluding the North Shoreview/Dore Cavanaugh area). Sales data in the
adjoining chart includes all single-family homes in these communities.


SONOMA COUNTY

Sonoma County’s median homes prices continued their monthly increase after some bumpy winter months reaching $665,000 in May, or 4.4 percent below last year. Pace of home sales also continues to improve averaging 54 days in May, 9 days more than last year. See Sonoma County market statistics for May.

Defining Sonoma County: Sales
data in the adjoining chart includes all single-family homes and farms and ranches
in Sonoma County.


SONOMA VALLEY

Median home prices in Sonoma Valley picked up in May after relatively flat at the beginning of the
year, reaching $905,000. The pace of home sales also improved notably bringing
the average days on market to 45 days. See Sonoma
Valley market statistics for May.

Defining Sonoma Valley: Our real
estate markets in Sonoma Valley include the cities of Glen Ellen, Kenwood, and
Sonoma. Sales data in the adjoining chart refers to all residential properties
– including single-family homes, condominiums, and farms and ranches – in these
communities.


LAKE TAHOE/TRUCKEE — SINGLE-FAMILY HOMES

Median prices of single-family homes in Lake Tahoe/Truckee has been oscillating over the last year and reached almost $727,000 in May, down 2.1 percent from last year. Pace of sales has slowed somewhat averaging 75 days, 13 days more than last year. See Lake Tahoe/Truckee single-family-home market statistics for May.

Defining Tahoe/Truckee: Our real
estate markets in the Lake Tahoe/Truckee region include the communities of
Alpine Meadows, Donner Lake, Donner Summit, Lahontan, Martis Valley, North
Shore Lake Tahoe, Northstar, Squaw Valley, Tahoe City, Tahoe Donner, Truckee,
and the West Shore of Lake Tahoe. Sales data in the adjoining chart includes
single-family homes in these communities.


LAKE TAHOE/TRUCKEE — CONDOMINIUMS

Median home prices of condominiums in Lake Tahoe/Truckee has trended slightly lower in recent months bringing the May median sales price to $423,500, about 1.4 percent below last year. The pace of condominium sales has slowed more significantly, averaging 104 days in May, though these sales vary considerably throughout the year. See Lake Tahoe/Truckee condominium market statistics for May.

Defining Tahoe/Truckee: Our real
estate markets in the Lake Tahoe/Truckee region include the communities of
Alpine Meadows, Donner Lake, Donner Summit, Lahontan, Martis Valley, North
Shore Lake Tahoe, Northstar, Squaw Valley, Tahoe City, Tahoe Donner, Truckee,
and the West Shore of Lake Tahoe. Sales data in the adjoining chart includes
condominiums in these communities.