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Posted by Payman Shilian on October 18, 2024

Real Estate Market, Westwood Properties, Westwood Real Estate Stats, Westwood Real Estate Trends

A Deep Dive into the Westwood Market

Westwood Los Angeles Real Estate Trends Q4 2024

The real estate market in Westwood, Los Angeles, continues to show resilience and promise, despite seasonal trends and economic factors impacting activity. The fourth quarter of 2024 presents a mixed picture shaped by historical election-year dynamics, ongoing inventory challenges, and a gradual shift in interest rates. This data-rich analysis dives into the latest trends and offers insights on navigating the current market conditions for buyers, sellers, and investors.

Westwood Median Home Prices

As of Q4 2024, median home prices in Westwood remain stable, with the median price for single-family homes at around $2.4 million. This marks a modest increase of approximately 2% from Q3 2024 and a 6% rise compared to Q4 2023. For condos, the median price sits at roughly $935,000, up 3% from the previous quarter and 5% year-over-year. These figures highlight the area’s gradual appreciation in property values, underscoring its appeal and long-term investment potential.

Westwood Inventory Levels

Westwood Los Angeles real estate continues to experience low inventory levels, a trend that characterizes many high-demand neighborhoods in Los Angeles. In Q4, there are approximately 2.9 months of supply for single-family homes and 3.1 months for condos. While these figures reflect a slight improvement from the 2.5-month inventory seen in Q3 2024, they still point to a seller’s market. For comparison, a balanced market is typically considered to have 5-6 months of inventory, indicating that Westwood remains competitive with limited choices for buyers.

Interest Rate Impact

Interest rates have been a hot topic in 2024, influencing real estate activity across the country. The average mortgage rate in Q4 stands at around 6.8%, down slightly from 7.2% earlier in the year. Although this decline provides some relief to buyers, the impact on affordability remains significant, particularly in premium neighborhoods like Westwood. The elevated rates continue to deter some would-be buyers, while others are opting for adjustable-rate mortgages (ARMs) as a way to manage costs in the short term.

Westwood Days on Market Trends

Homes in Westwood are spending an average of 27 days on the market, with single-family residences typically selling faster than condos. This is slightly longer than the 24-day average observed in Q3 but still well below the Los Angeles citywide average of 41 days. The shorter time on market indicates that demand in Westwood remains robust, although the slight uptick reflects some of the uncertainty associated with the election cycle.

Finding Properties in Westwood

For buyers navigating the Westwood Los Angeles real estate market, finding the right property requires persistence and strategic planning. Working with an experienced real estate agent who has access to off-market listings and “pocket listings” can provide a competitive edge. Given the limited inventory, it’s also crucial for buyers to act quickly when a property meets their criteria, as desirable homes often receive multiple offers.

Securing Financing

Securing financing in Westwood’s high-priced market can be challenging, especially with current interest rates impacting affordability. Buyers should aim to get pre-approved for a mortgage before starting their home search to demonstrate their seriousness to sellers. With rates still elevated, some buyers are turning to alternative financing options, such as ARMs, which offer lower initial payments. Refinancing may become an option if rates drop in the future, providing an opportunity to reduce monthly mortgage costs.

Navigating a Competitive Westwood Market

The competitive nature of Westwood’s real estate market means buyers need to adopt strategies that make their offers stand out. Some tactics to consider include:

Escalation clauses: Adding an escalation clause to an offer can help buyers outbid competitors by automatically increasing the bid up to a specified amount if other offers are higher.
Flexible closing terms: Offering a seller the option to close quickly or stay in the home after closing may appeal to their specific needs.
Larger earnest money deposits: Demonstrating financial stability through a higher deposit can make an offer more attractive to sellers.

Strategies for Maximizing Home Value When Selling in Westwood

For sellers, Westwood’s robust market presents an opportunity to maximize returns. Here are some strategies for increasing a property’s appeal and achieving a higher sales price:

Targeted renovations: Focus on upgrades that provide a high return on investment, such as modernizing kitchens and bathrooms. Even simple enhancements like new countertops, appliances, and fixtures can significantly boost value.
Enhancing curb appeal: First impressions matter. Invest in landscaping, repainting the exterior, and updating the entryway to make the home more inviting.
Professional staging: Well-staged homes often sell faster and at higher prices. Staging helps buyers envision how to utilize the space and adds a polished, welcoming feel to the property.

Pricing Effectively

Accurate pricing is crucial for a quick and profitable sale. Sellers should collaborate with their agents to analyze comparable sales and determine the right price for their home. Overpricing can result in a property languishing on the market, while underpricing may leave potential profits unrealized. The goal is to set a price that reflects the market’s competitive nature while still attracting serious buyers.

Marketing Properties in Westwood

Effective marketing strategies can help generate buzz and attract the right audience. Sellers should:

Utilize high-quality photography and video tours: With most buyers starting their search online, visual appeal is key to capturing attention.
Leverage social media platforms: Sharing professional photos and videos on social media can expand reach, especially in luxury markets like Westwood.
Host exclusive open houses and broker events: Private showings for brokers and qualified buyers can create a sense of exclusivity, potentially driving multiple offers.

Rental Market Trends and Investment Opportunities

The rental market in Westwood remains strong, supported by high demand from UCLA students, young professionals, and families. The average rent for a one-bedroom apartment is about $3,100, while two-bedroom units average $4,300. Vacancy rates are low, with many rental properties maintaining an occupancy rate above 95%. This robust demand creates a favorable environment for investors seeking stable cash flow and long-term appreciation.

Long-Term Investment Potential

Westwood’s long-term investment potential remains solid due to several factors:

Proximity to UCLA: The university attracts a steady stream of students, faculty, and staff, creating a consistent demand for rental housing.
Purple Line subway extension: The ongoing development of the Metro Purple Line, which is set to extend to Westwood by 2027, will improve accessibility and could drive up property values in the vicinity.
Low housing supply: Limited land for new construction helps sustain high property values over time. Zoning restrictions also make large-scale development challenging, maintaining the area's exclusivity.

Investors looking for rental properties in Westwood should focus on multi-family units or condos located near public transportation and local amenities. Such properties are likely to attract renters willing to pay a premium for convenience and location.

Expert Predictions for the 2025 Westwood Real Estate Market

Looking ahead to 2025, experts anticipate moderate growth in Westwood’s real estate market. Here’s what to expect:

Continued Price Appreciation: The median home price is projected to increase by 3-5% for single-family homes and 2-4% for condos. This growth will be driven by low inventory levels, ongoing demand, and high rental prices.
Interest Rate Stabilization: If mortgage rates stabilize or decline in 2025, it could trigger a surge in buyer activity, especially among those who delayed purchases due to higher rates in 2024. Lower rates may also spur refinancing, impacting the inventory as fewer homeowners choose to sell.
Post-Election Market Dynamics: Historically, real estate markets slow down during election years, with fewer transactions in October and November. However, after the election, activity often picks up as uncertainty diminishes. Westwood is likely to see a rebound in sales during the first quarter of 2025, with an increase in both listings and closings.
Impact of the Purple Line Extension: The progress of the Metro Purple Line will continue to influence real estate in the area. Properties near the future station are expected to experience greater appreciation rates as the completion date approaches, benefiting both homeowners and investors.

In Conclusion

The Westwood real estate market in Q4 2024 presents a mix of opportunities and challenges. While election-year trends may temporarily slow activity, the area’s long-term appeal remains strong, driven by its premium location, limited inventory, and solid rental demand.

For Buyers: Act quickly, secure financing, and consider creative strategies to stand out in a competitive market.

For Sellers: Focus on maximizing home value through strategic renovations, accurate pricing, and effective marketing.

For Investors: Explore rental properties near UCLA and future transit hubs to take advantage of consistent demand and potential price appreciation.

As Westwood heads into 2025, the neighborhood remains a prime location for residential and investment real estate, with growth and opportunity on the horizon.

Ready to unlock your real estate potential in Westwood? Don’t navigate this complex market alone. Reach out to the Westwood real estate experts at the Shilian Group for a free consultation. Gain personalized insights, expert advice, and a winning strategy tailored to your unique needs. Whether you’re buying or selling, let the Shilian Group empower your real estate journey. Contact us today and turn your Westwood dreams into reality!

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