Is Los Angeles Real Estate Cooling Off?
With lackluster job numbers and a $24 billion hit as a result of the partial government shutdown, it looks like this economy is slowing down. Not that it was going that fast in the first place.
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If things are chilling out, L.A.'s red-hot home market might be showing it as well. According to residential listings site Redfin, Los Angeles remained one of the top three competitive real estate markets, but the competition has been fading:
The site says 72.2 percent of homes for sale here in September faced multiple, competitive bids. That's a lot, but it's down from 81.2 percent in September 2012.
The impact of the U.S. government shutdown and continued debt ceiling uncertainty are likely to further soften bidding wars in the coming months.
The competition in L.A. was still enough to place us as the third most competitive market in the nation, behind No. 1 San Francisco and No. 2 Orange County.
San Diego came in at No. 6, so Southern California is still rocking.
But when Redfin looked at the markets with the fastest-selling homes, L.A. came in a lowly ninth place. (The city fairly consistently ranks near the top in other real estate metrics.)
According to the site, 30.4 percent of offers ended up as sure-thing deals to purchase residences in L.A. within two weeks. That's down from 35 percent one year ago.
Marshall Park, a Redfin market manager, says:
The bargaining power that sellers had earlier this year is gone.