SoCal contracts decline in July for first time in 7 months
New contract signings across Southern California dipped year-over-year in July, according to a Douglas Elliman report released Thursday.
In Los Angeles County, 4,374 single-family homes went into contract last month, a more than 2 percent decrease from July of last year — the first time the county’s single-family contract volume has tilted negative on a year-over-year basis since December.
The slight downturn is yet another sign of the region’s white-hot market, said appraiser Jonathan Miller, who authored the report.
“It’s not that demand is cooling,” he said. “It’s that sales listing inventory is collapsing.”
Last month, 3,154 single-family homes were listed in L.A. County, just over half the number of new listings in July 2020.
Buoyed by years of low mortgage rates and intense buyer demand throughout the pandemic, the county’s residential sales have been soaring. Just two weeks ago, a second-quarter Elliman report showed that L.A. had again notched new sales records, including an average Downtown and Westside price that had shot up 6 percent year-over-year to $2.8 million.
“What’s been happening in the last few months is that finally the collapse in listing inventory is restraining sales activity,” Miller said. “[The market] doesn’t have enough product to sell.”
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