Navigating the Fall 2024 Housing Market in Playa Vista

It has been a unique several years in the Playa Vista housing market featuring wild interest rate swings and pandemic-related housing preference shifts that have resulted in abnormal fluctuations in supply and demand. In order to better explain where we are going, it is helpful to take a look back.

During the first year of the pandemic, homes with private yards, often away from urban areas were in high demand as social distancing was the way of life and remote work and school frequently made commute times irrelevant. At that time, Playa Vista was hardly the place where people wanted to move. Many shared amenities were closed and living down the street from a restaurant or coffee shop wasn’t a benefit if you weren’t allowed to eat there. As life started to return to normal in 2021, people craved the community they had missed and moved back to Playa Vista in droves, keeping supply of active listings extremely low, sometimes in the single digits. As interest rates shot up rapidly in 2022, supply became constrained even more by the extra strong lock-in effect of a newer neighborhood where most residents have an existing loan on their properties in the 2-4% range. Since 2021, low supply has made it an amazing time to be a seller, however by late spring of this year, things began to change. Supply has increased and demand has been modest and, at the time of this writing in mid-September, there are 30 active listings for sale in Playa Vista. With supply at a more historically-normal level, and with interest rates declining from their highs, buyers are now in a much more desirable position. Based on current market conditions, here are some of my recommendations if you are selling or buying this fall.

Selling This Fall

If you are a long-time owner of a property in Playa Vista, take comfort in the fact that your property value has more than doubled since 2012. However, selling at the exact peak of this market, which appears to have happened in the second quarter of this year, might no longer be realistic. For some properties it is, but for others this will be more challenging. It depends on the supply and demand for your particular property (building, location, floor plan, and updates). If your primary goal is to achieve peak pricing, then it might be better for some of you to wait. If you are more motivated to sell now, then it is important to be priced strategically, as determined with the help of a local expert. Staging and refreshing certain finishes are also valuable investments that can make your home shine without costing an arm and a leg. Another pro tip is to make sure your home is ready to move into for the next owner when they buy it (e.g. no tenant rights, major repairs, extended contingencies for sale, uncertain lease-back requests, etc..). Following these recommendations is crucial in order to obtain the highest possible sale price. There are already many reasons for buyers to hesitate such as an upcoming election, the anticipation of upcoming interest rate cuts, and major real estate industry changes, as well as increased supply. There’s no reason for them to also doubt when they will actually be able to take possession of the property to make them cross yours off their lists. You can still sell your property for a good price in today’s market, but things need to be executed close to perfection to get the most possible buyers’ attention.

Buying This Fall

If you are in the market to buy, I am glad you are reading this because one of my best pro tips is to buy in the 4th quarter of the year. If you do, you’re competing with fewer buyers and many of the available properties come from the most motivated sellers. Reduced competition should also result in less pressure to act quickly, which can make the process less stressful. If you don’t mind getting out there when everyone else is dealing with holiday stuff, shorter days, and with less timing urgency for placement for the next school year, then you’re probably going to get a better deal, and you deserve it! Work with an agent who knows the market well, including historical desirability and values for a particular property, as well as someone with a good reputation in the community who can leverage their relationships to your advantage. You’re more likely to get your offer accepted that way and they might also get you access to some off-market supply. Some sellers are also motivated to sell before the end of a year for tax purposes, so hesitate to negotiate a deal over the holidays. The best listing agents will see the value of putting a deal together 365 days a year, especially when they are not receiving much other activity at certain times.

There you have your playbook for the next two to three months for buying or selling in Playa Vista. The market changes quickly and this information will be outdated by January, if not sooner, so if you are interested in learning more today’s market or to discuss an action plan, please contact me. I am always happy to hear from one of our neighbors to discuss your goals.

Compare