SoCal Quarterly Market Micro Insights Report: Q1 2023
April 21, 2023 | Compass California Real Estate Blog
It is our pleasure to bring you the Compass SoCal Q1 2023 Market Report. The first quarter of 2023 was a “wait and see” market throughout Southern California. Rising interest rates impacted home sales activity. Sellers were reluctant to list their homes. Buyers held off writing offers in many areas trying to gauge market timing. Average days on a market, a real-time indicator, increased around Southern California. Single-family home buyers in Manhattan Beach were in no hurry to pay the median sales price there of $2.9 million. The average days on market for those homes increased to 47 in this year’s first quarter compared to 31 last year.
In Malibu, where home sales activity reached record highs over the last several years, home sales activity in the first quarter dipped 48 percent. That impacted the median sales price, which dropped to $2.5 million, a 33 percent decrease compared to last year’s first quarter. Even in Beverly Hills, once thought to be its own golden bubble, the median sales price for single-family homes declined by 39 percent to $5.8 million. Heading over “the hill” to the San Fernando Valley, the median sales price for single-family homes in the first quarter in Tarzana decreased 18 percent to $1.4 million. In some areas like Hermosa Beach, the median sales price for single-family homes decreased 33 percent to $1.8 million over last year’s first quarter. Conversely, the median sales prices for condos in Hermosa Beach rose 81 percent to $2.1 million.
As the Spring market unfolds, look to sellers to price their homes to real-time market conditions guided by Compass professionals with deep local knowledge.