Fancy brokerage The Agency is now moving into the research game--their first effort is a look at how the expensive home market in LA was doing in the first quarter of 2013. The report only analyzed "closed and currently listed single-family homes above $1,000,000 and condominiums above $500,000," primarily on the Westside, and guess what it found: things are awesome for those guys!
-- "It's projected that 613 single-family homes above $1,000,000 will close in the First Quarter 2013, a 53% increase from one year ago."
-- "Condominiums sales above $500,000 have shown equally strong absorption over the last four quarters with a projected 575 condominium closings in the First Quarter 2013." 407 have already closed.
-- The Ritz-Carlton Residences at LA Live are now 80 percent sold out "with pricing averaging over $900 per square foot."
-- But it's not all sunshine! "While pricing has remained fairly consistent in the luxury single-family home market, price per square foot for closed sales in First Quarter 2013 averaged $752 - still 12% below peak pricing achieved in First Quarter 2008."
-- But it's pretty sunshiny: "However, First Quarter 2013 average price per square foot for closed sales is 4% above the eight-year average of $721 (and 20% above the trough of $625 from First Quarter 2005)."
-- "In Q1 2013, average closed condominium price at $883,053 is only 5% below the peak and over 16% above the trough of the last eight years."
-- However, "The Q1 2013 average price per square foot of $515 is still 10% below the peak."
-- "Post-recession average pricing never dropped below 2005 levels, thereby confirming the demand for Westside neighborhoods was less affected by the recession than some outlying areas where prices were drastically affected by overbuilding and pervasive foreclosures."
-- (And a final fun fact: "The largest ever condominium closing occurred in Fourth Quarter 2010 with Candy Spelling's $34,800,000 penthouse at The Century.")
· The Agency Research & Planning Group [The Agency]