Silicon Beach Properties

  • call/text (424) 272-1339

How's The Market Venice?

The #1 question realtors get asked is "how's the market?" It's such a big question. I almost never know where to start. Different people think different criteria tell the story. Below are six that I think best answer the question, along with trend graphs as of December 31st. All graphs depict a 12 month rolling average to smooth out the trendlines, unless otherwise indicated. This means that each data point is 12 months of activity.

how is the market Venice

Because prices are so different between single-family properties and condos, the date below is separated out for SFR. Please drop us a note to get Venice condo graphs or any other specialty property or another neighborhood. We can also compare up to four neighborhoods on one graph.

Median Sales Price

Venice’s median sale price for single family homes has been flat-ish since March at around $2M. We report median price, rather than average price, because median is literally the middle. An average could skew too far high or low if there are one or two weighty outliers. 

Venice, however, is a big place with lots of distinct neighborhoods, each with their own pricing eccentricities. East of Lincoln Blvd. prices dramatically differently than west of Lincoln. Contact us for details and/or to request custom graphs.

Price Per Square Foot

The average price per square foot has been falling in Venice since September, currently hanging out at $1227/ft for single family homes in Venice on a rolling 12 month average basis (shown in the graph below). The actual PPSF for November was $1360/ft. 

I bet you wish you'd gotten in in 2013 at $705/ft, right? 

Different property types and bed/bath configurations likely have their own average PPSF. Contact us [/contact] if you want to see a graph for a particular property type or bed/bath configuration or sub-neighborhood of Westchester.

Months Supply

Months Supply is a good indicator of a sellers' versus a buyers' market. Typically, a market that favors sellers has less than six months of supply (listings). Venice’s months supply number was 4.5 in December, down from 4.7 in November and 5.2 in October.

On a rolling 12 month average, Venice is slightly higher than at this point last year, but slightly lower than two years ago.

In a seller's market, buyers can expect to pay their own closing costs and other negotiable amounts and they can also expect competition from other buyers. Venice is trending in the right direction to stay in seller territory, but with fewer buyers in the market due to interest rate and affordability considerations, the buyers actually in the market may start seeing more power soon.

Price Reductions aka "Right Pricing"

Price reductions are a mixed bag as far as being an indicator of any trend, but people still love to talk about this metric.
Sometimes a seller starts out unrealistic and has to "right-price" to get into escrow. Sometimes the agent is from out of area and doesn't know that West of Lincoln prices are higher than east of Lincoln. It takes some real analysis of the price reductions to see if there is a broader trend working.

As you can see from the graph below, the appearance is a precipitous drop in price, but that drop is only 1.3% over the last six months ($26K on a $2M median priced property). Note that this particular graph is a 12 month rolling average to show the more general trend. Venice properties are mostly right priced.

Days On Market

Days on market can be an indicator of demand. If DOM is trending down, properties are moving faster (higher demand). In Venice, DOM is trending up, but just by a couple days over each of the last two months in the bigger 12 month rolling average picture, and mostly down for the last two and a half years.

The actual numbers from the last two months are up dramatically at 13 days in October and 45 in December. Levels have been this high a couple of times in the two years. We’ll just have to see if DOM dramatically drops again next month, following the pattern set in the last couple of years.

Because the actual numbers are so far off the rolling 12 month average, we are showing both graphs below.

Back on Market

Two properties fell out of escrow in Venice in the last seven days. Properties that have fallen out of escrow sometimes represent a great opportunity for a bargain. Contact us for details.

Assumptions & Other Markets

This report was written for single family homes in the Venice community of Silicon Beach. Similar reports can be generated on request for neighborhoods and other carve outs within Venice 90291. We can generate reports for other property types, too! Contact us for custom reports.

Click these links to find market reports for Mar Vista real estate, Marina del Rey real estate, Playa del Rey real estate, Playa Vista real estate, Westchester and El Segundo real estate.

Wondering what your Venice property in Silicon Beach is worth?my home worth

Click this link for access to our 60 second property valuation tool.

No obligation and you know you want to know, right?

The #1 question realtors get asked is "how's the market?" It's such a big question. I almost never know where to start. Different people think different criteria tell the story. Below are six that I think best answer the question, along with trend graphs as of December 31st. All graphs depict a 12 month rolling average to smooth out the trendlines, unless otherwise indicated. This means that each data point is 12 months of activity.

January 07, 2019

Comments

You can or leave your comments as a guest.