There’s a massive condo shortage Downtown–developers were more likely to launch rental projects during the recession and a lot of recession-era condo projects opened as rentals while they waited out the storm–but things aren’t completely terrible, according to new numbers from The Mark Company (which is in the business of marketing condos, so). Inventory of resale units is up these days–in April, there were only 64 units on the market in DTLA; in October there were 118 active listings (another 47 were in contract, 26 sold). That’s about a four and a half month supply, a little short of ideal. Prices on resales were up 28 percent in October 2013 over October 2012 (to $478 per square foot), which is a pretty huge jump, but still only a little bit ahead of Los Angeles County as a whole, where prices were up 24.6 percent in October over last year. Things are a little tougher if you want to buy a brand new, unused unit, because you have a germ phobia or something: there are only 20 units up for grabs right now–all in buildings that have been open for years (the Ritz-Carlton, Evo, and 655 Hope)–but that’s down 88 percent from a year ago. Prices for new units are up 14 percent (to $622 per square feet). Things will loosen up just a tiny bit early next year when the Arts District’s Barker Block opens up 68 new units.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”