The Mid-Wilshire neighborhood in Los Angeles has seen notable real estate activity this past July, 2024, with an absorption rate of 45%. For those unfamiliar with the term, the absorption rate is a key metric used in real estate to measure the rate at which homes are sold in a specific market over a given period. A balanced market typically has an absorption rate of around 20%, so at 45%, Mid-Wilshire is currently experiencing a seller’s market.

July 2024 Market Overview

• Active Listings: 22
• Homes Sold: 10
• Average Sales Price: $2,227,000
• Average Days on Market (DOM): 59

With 22 active listings and 10 homes sold, Mid-Wilshire’s absorption rate indicates a robust demand for homes in this area. The average sales price of $2,227,000 reflects the premium buyers are willing to pay for properties in this desirable neighborhood. The average DOM of 59 suggests that while homes are selling well, buyers are taking a little more time to make decisions, which is typical in higher price ranges.

Gavin Newsom’s Executive Order and Its Potential Impact

Recently, California Governor Gavin Newsom issued an executive order aimed at addressing the ongoing crisis of homelessness in Los Angeles and other major cities across the state. The order directs state agencies to work with local governments to remove the unhoused from public streets and place them in temporary shelters, with the goal of transitioning them to permanent housing.

Potential Impact on Mid-Wilshire

1. Property Values: As the initiative begins to clear encampments and relocate the unhoused population, we might see an improvement in public perceptions of safety and cleanliness, potentially boosting property values in affected areas like Mid-Wilshire.

2. Market Activity: A perceived increase in safety and the general improvement of the neighborhood may attract more buyers to Mid-Wilshire, further driving demand and possibly increasing the absorption rate in the coming months.

3. Community Response: While the initiative may lead to cleaner streets and higher property values, it could also spark community debate. Concerns about the treatment of the unhoused and the long-term efficacy of temporary shelters could influence public opinion and, by extension, the real estate market.

4. Neighborhood Dynamics: Changes in the neighborhood’s dynamics, such as reduced visibility of homelessness, might attract a different demographic of buyers, possibly shifting the type of homes in demand, from more affordable options to higher-end properties.

As Mid-Wilshire continues to experience strong real estate activity, with a 45% absorption rate in July 2024, the neighborhood remains a highly desirable location for homebuyers. The impact of Governor Newsom’s executive order to remove the unhoused from local streets could further influence this market, potentially enhancing property values and attracting even more interest in the area.

As we watch these developments unfold, it’s essential to stay informed about both the real estate market and the broader social and political changes affecting our community. I’m Nathan Derry with JohnHart Real Estate, and I’m here to help you navigate these dynamic times in the Mid-Wilshire market. Whether you’re looking to buy, sell, or simply understand your home’s value in this evolving landscape, feel free to reach out.

All the best,

Nathan Derry, Realtor

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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