Friday, June 29, 2018

Los Angeles Single Family Housing Market vs. the Condo Market – Who Wins?

(Click on the image to enlarge)

Though the Los Angeles Single Family Residential ("Housing") market shot up from $725K to $850K in a year, it quickly trended down to $775K, giving back half of the nominal gains and remaining somewhat directionless. Since both trendlines are confirming the declining trend, this market needs a rapid trend reversal. The fact that the housing market has already breached the $775K soft support would make prospective buyers quite nervous.

The LA Condo market, on the other hand, shows significant strength, rising from $440K to $500K during the same period. On its way up, it had three breakouts, each one eclipsing the prior high, thus pointing to strengthening fundamentals. Both trendlines are rejecting the Dec-17 dip as an aberration.

Given the steadily improving market trend backed by strong fundamentals, the standout winner is the Condo market.   

- Sid Som, MBA, MIM
President, Homequant, Inc.


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