Prices Set to Rise in Playa Vista

After several years of price declines, the demand/supply ratio has shifted in 2012.  Pent up demand combined with affordability and consumer confidence in addition to optimism on Playa Vista’s reputation moving forward has contributed to an inventory shortage that will be observed as median price increases before EOY 2012.

For 2 bedrooms sold in the last 6 months as reported by the MLS, the median price was $435,000 and $322/sf.  The list price to sale price ratio is 97.84%.  For backup and pending listings, the median list price at the time of the accepted offer is above $471,000 and $328/sf.   For active listings, of which many are short sales known to have seller-accepted offers over asking price but are still listed as active until the short sale is approve, the median price is $543,000 and average price/sf is above $366.  Based on conversations and experiences I have had, I expect the list/sale price ratio to be close to 100%.

2011’s average median price for 2 bedrooms in Playa Vista as reported by the MLS was $476,000 and price/sf was $334.   So we should expect to slight price declines reported in the first quarter, probably flat numbers (year over year) in the second quarter as some of the lower priced properties in escrow (mainly short sales agreed to last year) work their way through the system, and modest increases of between 6-8% for the year by EOY.