Land sales in WeHo are in a downturn. Not in price, but in volume. A story in The Real Deal, the national real estate web site, cites Jones Lang LaSalle in noting in the third quarter of last year “the dollar volume of land sales reached $10.8 million only to drop to $3.5 million the following quarter and barely register in the first quarter of 2016.”
The Real Deal story also notes that the average land sale was $3.7 million in the third quarter, falling to $1.8 in the fourth quarter. By contrast, the average sale price since 1990 has been $2.6 million.
The reason? There aren’t a lot of transactions in this densely built city because of the large number of commercial projects now underway.
You can read more here (but note that the House of Blues hasn’t yet been demolished).
@ Larry. I keep hearing how there is such low inventory everywhere. Thus the reason home prices are astronomically high. But the fact is…there is PLENTY of inventory, and your real estate analysis proves it. The problem is its all priced way too high with homes starting at 600k and condos in the 400s. I honestly don’t know who these people are being able to afford these prices…and many plopping down cash. The demographic of Weho and all of SoCal is certainly changing.
Today at our Team Meeting, (Im a Keller Williams Real Estate agent), the statistics showed that West Hollywood has become a buyers market. For the first time in years the inventory or homes/condos for sale exceeded a 6 month supply. For purposes of clarity a Sellers Market is when inventory is less than 6 months supply and Buyers market is when on market inventory exceeds 6 months supply. The trend line breached 6 months on West Hollywood residential real estate about a week ago and this week Beverly Hills breached the 6 month line also indicating a slowing residential real… Read more »
Love your commentary on the McMansions ….exactly correct and utterly ridiculous and sad that the City allows these monstrosities duplicated block after block with no end in site. Can’t wait for the Cape Cods to multiply…oh boy! How about some kind of architectural review in this town??? Ugh!
Did Jones Lang LaSalle ever think that Weho is running out of parcels to sell because of there simply not being any more land in our city. 1,9 Square miles is 1.9 any way you slice it. I am sure that enough residential properties have been gobbled up by the group building the same 5br, 4.5ba mcMansions with differing facades all over town to keep them busy for a time. I really cracked-up when I saw an ultra modern one next to a Spanish Facade next to the newest style – the ‘Cape Cod’ version, which, of course, looks nothing… Read more »