Sales of "affordable luxury" homes in Los Angeles—those priced between $2 million and $3 million—gained steam and outperformed all other market segments in April, according to an analysis by brokerage Pacific Union.
While home sales in the overall Los Angeles market remained on par with last April’s numbers, those priced between $2 million and $3 million increased 39% year-over-year to 172 in April, making them the strongest market performers.
Sales of $3-million-plus homes also increased 23% year-over-year to 132, while 22% more homes with a price range between $1 million and $2 million sold in April 2018 compared to April 2017, rising to 844.
By contrast, home sales below $1 million declined 14% year-over-year to 982, according to Pacific Union data provided to Mansion Global this week.
"The Los Angeles market showed a bifurcation in April. Higher-end homes fared much better than affordable housing," said Selma Hepp, chief economist at Pacific Union.
Boosted by strong sales at higher price points, the median sales price in Los Angeles rose 14% year-over-year to $939,500, fast approaching the $1 million mark.
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In other signs of Los Angeles’s market strength, homes were sold faster and at higher prices than asking, according to Ms. Hepp.
Homes selling in April sold in 31 days, three days faster compared to April 2017. Also, 47% of homes sold for more than their asking prices.