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Community Corner

Culver City's High-End Real Estate Market Showing Extreme Price Sensitivity

The demand for larger homes listed for $1 million or more is much weaker than it is for smaller, less expensive homes.

The month of July saw the largest number of sold homes in Culver City for the entire year with 17 closed transactions in the single family home category. This is quite a jump from the annualized average of just 10 a month. Good news for home sellers, and yet, when we look closer at the performance of the "high end"—homes priced at more than $1 million—it's a very different story.

The average large home in Culver City is around 2,700 square feet. That compares to the average of 1,400 square feet or so for the market less than $1 million.

So let's look a little closer at what has transpired so far this year and see what is going on. Since January, 15 homes have been listed for sale for between $1 million and $1,399,000 (the highest). Four homes have sold at an average price of $1,151,250. Seven homes have expired or remain unsold with an average asking price of $1,125,714 when they were taken off the market. Currently seven homes are available for sale with an average price of $1,142,143. These homes have so far averaged 53 days on the market without finding a buyer. Currently there are no properties in escrow.

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Three of the expired properties have been listed at least twice, and one has been listed three times this year without finding a buyer.

What can we take away from all of this information? With a limited number of homes of this size available, only 15 all year, the demand for larger homes is much weaker than it is for homes under $1 million. With virtually no difference between homes that sold and homes that did not, there is extreme price sensitivity when it comes to homes in this price range.

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Sellers of these larger homes in Culver City must be extra careful when pricing their homes for sale today. Unless you show a compelling reason for buyers to make an offer, they may just pass you by altogether.

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