Buyers Becoming More Selective in Playa Vista Market
After the dearth of inventory in the 4th quarter and the trickle of listings that got quickly gobbled up in the early months of 2018, supply has begun to normalize. Inventory for condos and single family homes stands at 19, which includes one listing currently under construction at Seabluff. These more “normal” conditions are reducing urgency as buyers are becoming selective with respect to location, condition, and value.
In terms of market segments, well-priced and well-located entry level homes priced under $900K are generally still moving very quickly. Larger single-level properties such as those in Chatelaine and Camden, which are rare and cater to a select demographic segment, have been flying off the market. Detached homes are moving, but only if value-priced. There are still dozens of yet-to-be-built homes in The Collection priced in the low $2M’s, so buyers are opting to hold out for those unless an older home offers a value in the $1.6-$1.7M list range.
The segments that are having trouble are larger, attached townhome-style condos and units that face busy streets (or both). Currently three of these listings priced from the low $900’s to the mid $1.0M’s have been on the market over 60 days and one was recently canceled. Buyers are finding that in a “normal” inventory environment, these homes, which fit no specific niche (i.e. 3 bedroom single-level, attached garage, detached/yard), are not much more of a value than 2 bedroom entry-level units that may be 500 square feet smaller.
This same situation existed and I wrote about in 2014. It’s not all about price per square foot. In a supply-driven market when supply is unquestionably coming back, functionality, scarcity, and other factors such as architecture, view, noise, and outdoor space all influence buyer behavior and thus price/list times and a property’s relative value in the market.