SoCal Quarterly Market Insights Report: Q2 2023
It is our pleasure to bring you the Compass SoCal Q2 2023 Market Report The second quarter was challenging around Southern California. Interest rates continued to rise, impacting the market. Sellers were reticent to list their homes giving up mortgages with lower interest rates. Buyers found their purchasing power diminished due to higher rates. The result—sales activity fell throughout much of Southern and Central California. Single-family homes attractive during the COVID market found fewer buyers writing offers and closing transactions. The median sales price for those homes declined in many areas as average days on market, a key indicator increased.
Home sales activity on the desirable Westside fell 34 percent in this year’s second quarter while the median sales price decreased 13 percent to $1.7 million. Single-family home prices in Bel Air-Holmby Hills fell by 41 percent in the second quarter to a median sales price of $1.5 million. When the median sales price declines in a traditionally high-priced area it may present opportunities for buyers. The median sales price in Malibu Beach for single-family homes decreased by 54 percent to 4.9 million in the second quarter. There were exceptions around the region where the median sales price continued to rise. In West Hollywood, the median sales price for condos increased 5 percent to $995,000. Celebrity-favored Hidden Hills saw the median sales price for single-family homes increase 8 percent to $ 7 million.
As we enter the second half of 2023 deep market knowledge is essential for both buyers and sellers. Compass industry professionals have the experience to understand this unique market.