All of the sales data is in for 2013 for homes, condos and all other properties sold. Some of it may surprise you.
There was a lot of focus on the Wilshire Corridor, because the papers only reported on SFRs (single family residence homes). Condos always follow homes, and the Corridor is the largest collection of full amenity high rise buildings outside of Manhattan. Certainly, we fielded a large amount of phone calls last year because the Corridor covers a LOT of residents, all of them wondering what the recovery meant for them as condo owners.
For 2013, there were a total of 155 condominiums sold on the Wilshire Corridor, totaling $186,768,883 in 26 buildings. The range was all over the rainbow, from a one bedroom unit at the Wilshire Holmby comprising 873 sq ft for $309,900, to a Penthouse unit in The Wilshire House that included 3 bedrooms and 5 bathrooms spread out over 5,990 square foot, for the measly sum of $12,800,000. (Can you imagine your first property tax bill on $12.8M?)
What exactly does that mean?
It means the average sale was $1,204,961, and it took an average of 118 days from the date of the listing to the time a contract was struck. If you see the graph below, you see a measurable decrease in Days on Market (DOM) form the beginning of the year to the end of the year. Buyers were able to negotiate an average of a 5.83% discount on the listed sales price.
Where do you fit in?
Each building has its own amenities and special circumstances developing the perception Buyers build in their minds as they move through the purchase process. Further, there is a significant difference between condos facing Wilshire and condos facing away from Wilshire, and buildings on the north side of Wilshire and buildings on the south side of Wilshire. Most of all, condition, floor plan, and elevation will further dictate whether a Buyer perceives value in the Listed Price, or not. It’s really not rocket science; if you are getting showings, then your property is listed at the correct price. If you are not getting showings and your agent has professionally marketed the property, then you’re priced too high.
How about that question of elevation?
It really does make a difference. If we dig down deeper into the numbers, we see a significant change in this data. There were 98 units sold on the bottom ten floors in those 26 buildings, averaging a 4.69% discount off the purchase price. As we move up to Floors 11 thru 19, the number of unit sold drops to 53, but the negotiation gets tougher with Buyers pulling out an average of 5.84% from the Listed Price. (Part of this drop in units is due to the fact that many buildings, such as the Wilshire Thayer, do not go much higher than 10 floors.) When we move to Floors 20 and up, only four units were sold, and in those the Buyers really pushed hard, negotiating an average of 17.61% off the Listed Price. Those numbers are a little skewed by Unit #2104 at The Carlyle that was listed at $5,500,000 and eventually sold for $4,300,000 after 81 days on the market, without which the average discount would have been a more respectable 10.77%.
Did the poor Sellers suffer from holding onto their condo, based on their elevation?
You betcha! Those owners on the bottom 10 floors averaged only 91 DOM, indicating a motivation to sell and original listed prices that matched the Buyers perception of value. The owners of condos on Floors 11 thru 19 didn’t do so well at an average of 158 days. And the owners with the best views, on Floors 20 and up? They were the toughest, hanging onto their units for an average of 223 days. But again, that was slight skewed by Unit #2205 at The Crown Towers which hung around for 632 days. Without #2205, the average would have been in line at 87 days.
By the way, who won the prize for longest period of time on the market before going into contract?
Unit #1402 at La Tour for a whopping 1434 days, or almost 4 years. Unit #1401 in the same building wasn’t far behind with a whopping 821 DOM. Not to be outdone by Unit PH2 at The Dorchester for 912 days. That’s an awfully long time for property taxes, mortgage, HOA dues, assessments, insurance and utilities to accrue, especially if you end up selling the condo for the same price as your original listing price or close to it.
All of these numbers may or may not pertain to your particular situation, but they do help us construct the overall picture of the health of the Wilshire Corridor. If you’re interested in the specifics of your building, go to our website at www.wilshirecorridor.com and pull down the “Buildings” tab, or call my office and request a recap of your condo building.
Even better, if you’re curious just call me for an appointment. There’s never any obligation, and we are happy to help you determine the value of your condo, whether it’s to sell or to lease, secure a refinance package or just for general knowledge. That’s our specialty and no one does it better.