Hello, everyone! Nathan Derry here with JohnHart Real Estate, bringing you the latest update on the West Adams real estate market for July 2024. If you’re keeping an eye on the local property scene, you’ll want to know about the current absorption rate and what it means for buyers and sellers alike.

Market Overview

For July 2024, the absorption rate in West Adams (zip code 90016) stands at a robust 47%. This figure is derived from the fact that out of 34 active listings, 16 were sold. The average sales price in this area was $1,200,000, and the properties had an average of 35 Days on Market (DOM).

What is the Absorption Rate? The absorption rate is a key indicator in real estate, showing the rate at which available homes are sold in a specific market during a given time period. A 47% absorption rate indicates a seller's market, meaning that homes are selling quickly, and there’s high demand compared to the supply of available properties.

Key Factors Influencing the Market

One significant factor influencing the real estate market and the community at large is Governor Gavin Newsom's recent directive. On Thursday, he ordered California state officials to begin dismantling thousands of homeless encampments across the state. This action follows a Supreme Court ruling that grants governments greater authority to remove homeless individuals from public spaces.

Impacts on the Local Community:

1. Housing Demand and Prices:

   • Increased Demand: As homeless encampments are dismantled, there could be a short-term increase in demand for affordable housing. This might drive more buyers and investors to seek properties in areas like West Adams, potentially raising property values further.
   • Price Fluctuations: The current average sales price of $1,200,000 might experience volatility. Investors might speculate on property values rising due to increased demand for housing solutions.

2. Community Dynamics:

   • Safety and Cleanliness: The removal of encampments may lead to improvements in safety and cleanliness in affected neighborhoods, making areas more attractive to potential homebuyers and investors.
   • Social Services Strain: There could be increased pressure on local social services to support the displaced homeless population. This might affect community resources and services.

3. Local Infrastructure and Services:

   • Public Perception: Changes in the local landscape due to the removal of encampments may influence public perception of the area. If handled sensitively, this can improve the appeal of neighborhoods for prospective residents.
   • Government Policies: It will be crucial to monitor how local government policies evolve in response to this directive and their long-term impact on housing and real estate trends.

The West Adams real estate market is currently experiencing a high absorption rate, indicating strong demand and a favorable environment for sellers. However, the broader socio-political actions, such as Governor Newsom’s directive on homeless encampments, are likely to influence market dynamics significantly.

As always, staying informed about these changes and understanding their potential impacts can help you make more informed decisions whether you’re buying, selling, or investing in real estate.

Feel free to reach out if you have any questions or need further insights into the West Adams real estate market or any other areas. I’m Nathan Derry with JohnHart Real Estate, and I’m here to help you navigate these dynamic times.

Stay safe and well-informed!

Best regards,
Nathan Derry
JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

Interested in seeing a property or one of my off market properties in person? Contact me today!  Who you hire matters!!!

Ready to make the best move of your life… let’s chat today!