Compass / Urban Hillsides Real Estate Q2 2017 Los Angeles Market Report

Q 2 2 0 1 7 L O S

A N G E L E S

M A R K E T R E P O R T

urbanhillsides.com

Introducing the Compass Q2 2017 Los Angeles Market Report Compass created Compass Markets, a mobile application that analyzes real estate

Map of Coverage Area

Page 02

Single Family Overview

Page 03

Bel Air-Holmby Hills

Page 09

Beverly Center-Miracle Mile

Page 10

Beverly Hills

Page 11

Beverly Hills Post Office

Page 12

markets in real time, because we believe in transparency and the importance of real-time information in the marketplace. Highlighted in this report are several key trends observed from our Compass Markets app throughout Q2-17.

The second quarter is historically LA’s most active selling season, and this year was no exception. The market for luxury single family homes recorded substan-

Single Family Sales

by Price Segment

Page 04

Condominium Overview

Page 05

Brentwood Page 13

Q2 2017 LOS ANGELES MARKET REPORT

tial volume increases, and it is safe to say that the past three months culminate in the most active quarter of production on record. 1,093 homes valued greater than $1M traded hands within Compass’ universe of coverage, a 21.9% YoY increase from Q2-16. This increase was primarily driven by the following neighborhoods: Beverly Hills (up 48.5% YoY), Pasadena (up 35.0% YoY), and Silverlake-Echo Park (up 34.3% YoY). Average PPSF increased 3.9% YoY to $940/ SF, while average sale price increased 6.9% YoY to $3.08M. Median sale price rose 6.1% YoY to $2.10M, while average days on market increased 6.7% YoY to 66 days. Please note that all references to single family sales include only listings

Condominium Sales

by Bedroom Count

Page 06

Neighborhood Snapshot Single Family Market

Page 07

closed at $1M or above.

While condos in LA’s prime markets retained their value during the quarter, sales

Neighborhood Snapshot Condominium Market

Page 08

Century City-Westwood

Page 14

Downtown LA

Page 15

Hancock Park-Wilshire

Page 16

Hollywood Hills East

Page 17

Los Feliz

Page 18

volumes declined rather significantly. 805 transactions were recorded during the

Malibu Page 19

period, an 11.0% drop from Q2-16, signaling strong buyer holdback as they await new product anticipated to hit the market later this year. While average price fell

13.4% YoY to $860K, average PPSF rose 1.7% to $640/SF, yet another high water

Pacific Palisades

Page 20

mark for condos in the city. Average days on the market dropped 5.2% YoY to 76

Pasadena Page 21

days. Please note that all references to condo sales include only listings closed at $500K or above. Value or valuation refers to PPSF in this report.

01

Santa Monica

Page 22

Silverlake-Echo Park

Page 23

Sunset Strip-Hollywood Hills

Page 24

West Hollywood

Page 25

Map of Coverage Area Compass’ Q2 2017 Los Angeles Market Report is an analysis of the 17 neighborhoods highlighted on this map. Please note that all references to Los Angeles overall refer solely to the collection of these neighborhoods and exclude all other

Q2 2017 LOS ANGELES MARKET REPORT

areas and neighborhoods of Los Angeles.

Pasadena

Bel AirHolmby Brentwood Hills

Beverly Hills Post Office

Hollywood Hills East Sunset StripLos Feliz Hollywood Hills West

West Hollywood Beverly Beverly Hills Center- Hancock Century Miracle ParkCityWilshire Mile Westwood

Pacific Palisades Malibu

Santa Monica

02

Silver LakeEcho Park

Downtown LA

Single Family

Single Family Overview Sales volume in the market for single

1200

$1,000

of coverage increased significantly

1100

$950

during the second quarter, with 1,093

1000

$900

transactions on the book, the highest

900

$850

number ever recorded in any quarters.

800

$800

For perspective, that’s a 21.9% increase

700

$750

over Q2 of last year, and 54.4% ahead of

600

$700

500

$650

400

$600

300

$550

200

$500

100

$450

the first quarter of 2017. What’s more, the largest increases are attributed to Q2 2017 LOS ANGELES MARKET REPORT

Avg. PPSF

# of Sales

family homes within Compass’ area

the toniest of neighborhoods, including Bel Air-Holmby Hills, Beverly Hills, and Brentwood. Average sale price in our universe of coverage increased a 6.9% YoY to $3.08M, as housing in LA contin-

$400

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

ues to trade at its peak values. Values across LA continued to rise, average PPSF being the only true equalizing metric for such a broad range of neigh-

SINGLE FAMILY MARKET Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$3,075,608

6.9%

$2,878,098

-0.3%

$3,084,056

$940

3.9%

$905

3.6%

$908

MED. SALE PRICE

$2,097,500

6.1%

$1,976,000

-0.8%

$2,114,500

NUMBER OF SALES

1,093

21.9%

897

54.4%

708

66

6.7%

62

-13.8%

77

2016

YOY%

2015

YOY%

2014

$2,903,314

2.0%

$2,845,926

-0.1%

$2,847,671

AVG. PPSF

$887

3.9%

$854

3.7%

$823

NUMBER OF SALES

3,258

2.1%

3,190

5.3%

3,030

borhoods and inventory, increasing 3.9% YoY to $940/SF.

AVG. SALE PRICE AVG. PPSF

DOM

ANNUAL PERFORMANCE

AVG. SALE PRICE

03

Single Family Overview Sales by Price Segment Q2 proved to be a very active quarter for home sales at

$1MM - $3MM

the absolute highest end of the price spectrum. Sales volume for homes valued greater than $5M increased

Q1 2017

YOY%

Q1 2016

QOQ%

Q4 2016

53.1% year-over-year, with 147 such deals recorded. 38 home sales over $10M were recorded during the period,

Q2 2017 LOS ANGELES MARKET REPORT

while 8 of these were valued greater than $20M.

AVG. SALE PRICE $1,772,019 0.3% $1,767,068 -0.8% $1,787,132 AVG. PPSF $940 3.9% $905 3.6% $908 MED. SALE PRICE $1,658,750 0.5% $1,650,500 -0.7% $1,670,000 NUMBER OF SALES 776 19.4% 650 55.2% 500 DOM 66 -8.2% 72 -7.2% 71

$3MM - $5MM

Q1 2017

YOY%

Q1 2016

QOQ%

Q4 2016

AVG. SALE PRICE $3,702,200 1.3% $3,654,789 -2.5% $3,798,774 AVG. PPSF $1,285 4.5% $1,230 5.0% $1,224 MED. SALE PRICE $3,591,250 -0.2% $3,600,000 -2.9% $3,700,000 NUMBER OF SALES 170 12.6% 151 41.7% 120 DOM 87 4.0% 83 1.7% 85

$5MM+

Q1 2017

YOY%

Q1 2016

QOQ%

Q4 2016

AVG. SALE PRICE $9,232,510 0.6% $9,179,029 -3.1% $9,529,803 AVG. PPSF $1,600 -4.1% $1,668 3.3% $1,548 MED. SALE PRICE $7,450,500 2.8% $7,250,000 -2.1% $7,607,500 NUMBER OF SALES 147 53.1% 96 67.0% 88 DOM 92 -17.9% 112 -11.1% 104

04

Condominium Overview Condo volume in Los Angeles continued to trade off its peak levels during Q2, while values climbed slightly ahead of the same period one year ago. Total sales decreased 11.0% YoY in Q2 to 805 deals, while average PPSF increased 1.7% to $640/ SF, the highest ever recorded value for that

Q2 2017 LOS ANGELES MARKET REPORT

benchmark.

Avg. PPSF

# of Sales 1000

$650

900

$625

800

$600

700

$575

600

$550

500

$525

400

$500

300

$475

200

$450

100

$425

0

$400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

CONDO MARKET Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$859,724

-13.4%

$992,524

-14.3%

$1,003,262

$640

1.7%

$629

0.2%

$639

MED. SALE PRICE

$751,000

-1.8%

$765,000

-4.1%

$783,500

NUMBER OF SALES

805

-11.0%

904

36.0%

592

DOM

76

-5.2%

80

-15.7%

90

2016

YOY%

2015

YOY%

2014

$963,753

-1.6%

$979,390

-0.1%

$980,244

AVG. PPSF

$620

-0.2%

$621

2.7%

$604

NUMBER OF SALES

3,116

14.1%

2,731

11.7%

2,445

AVG. SALE PRICE AVG. PPSF

ANNUAL PERFORMANCE

AVG. SALE PRICE

05

Condominium Overview Sales by Bedroom Count The second quarter was characterized by significantly

1 BEDROOMS

higher volume at the lower end of the price spectrum, while demand for higher priced 2+ bedroom units

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

lagged previous quarters. Sales volume for 1 bedroom units shot up 25.4% to 148 transactions, while PPSF increased 2.9% YoY to $735/SF. 3+ bedroom units saw the largest declines, both in volume and value. 159 Q2 2017 LOS ANGELES MARKET REPORT

deals were recorded during the period, a 33.5% YoY decrease, while the average price point dipped 14.0% YoY to $1.10M.

AVG. SALE PRICE $640,960 -4.2% $668,732 -7.0% $689,209 AVG. PPSF $735 2.9% $714 2.1% $720 MED. SALE PRICE $595,000 1.7% $585,000 -3.5% $616,500 NUMBER OF SALES 148 25.4% 118 55.8% 95 DOM 92 41.0% 65 0.4% 92

2 BEDROOMS

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE $851,146 -9.3% $938,829 -11.4% $960,724 AVG. PPSF $629 0.4% $627 0.8% $624 MED. SALE PRICE $775,000 1.2% $766,000 -2.1% $792,000 NUMBER OF SALES 490 -8.6% 536 38.0% 355 DOM 71 -9.5% 79 -13.3% 82

3+ BEDROOMS

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE $1,102,268 -14.0% $1,281,419 -18.3% $1,348,549 AVG. PPSF $583 -0.9% $588 -5.2% $614 MED. SALE PRICE $925,000 -1.6% $940,000 -2.6% $950,000 NUMBER OF SALES 159 -33.5% 239 16.9% 136 DOM 76 -17.0% 92 -32.2% 112

06

Neighborhood Snapshot This page provides a snapshot of the Q2 2017 single family market conditions by neighborhood. The

Single Family Market

Los Angeles single family average sale price increased 6.9% YoY, primarily driven by Beverly Hills Post Office (up 85.7% YoY), Los Feliz (up 64.3% YoY), and Pacific Palisades (up 24.1% YoY). The largest percentage increase in number of sales occurred in Beverly Hills (up 48.5% YoY), Pasadena (up 35.0% YoY), and Silverlake-Echo Park (up 34.3% YoY).

YOY%

NEGOTIABILITY

Brentwood

85

9.4% $3,944,009 -2.5%

$1,071 4.6% $3,125,000 5.9% 63 9.4%

-4.0%

Malibu

55

-3.5% $5,380,649 20.6%

$1,445 -7.9% $3,250,000 3.2% 133 15.2% -8.7%

Pacific Palisades

88

22.2% $4,123,663 24.1%

$1,219 22.0% $3,179,488 27.2% 68 10.0% -1.2%

Santa Monica

68

1.5% $2,962,069 5.5%

$1,211 4.0% $2,307,500 4.9% 41 4.4%

Bel Air-Holmby Hills

51

21.4% $5,137,432 5.4%

$937

4.1% $2,465,000 9.0% 92 -8.1% -3.8%

Beverly Center-Miracle Mile

59

31.1% $1,885,303 -7.4%

$805

2.1% $1,657,000 2.4% 74 64.9% -2.2%

0.8%

Beverly Hills

49

48.5% $6,314,235 -10.3% $1,405 3.9% $5,600,500 4.2% 72 -1.3% -3.5%

Beverly Hills Post Office

46

27.8% $5,604,432 85.7%

$991

25.2% $3,445,000 40.3% 83 -16.3% -6.5%

Century City-Westwood

57

5.6% $2,320,711 -9.7%

$863

-2.0% $2,100,000 -4.3% 47 11.2% 1.0%

Hancock Park-Wilshire

76

16.9% $2,195,287 3.6%

$717

3.1% $1,540,000 -6.7% 69 37.2% -0.4%

Hollywood Hills East

42

20.0% $1,590,103 -1.9%

$712

6.4% $1,403,000 -4.9% 62 -7.0% -0.8%

112

30.2% $2,451,310 -12.5% $909

2.0% $2,050,500 7.5% 69 -1.8% -2.0%

33

17.9% $2,136,453 17.4%

Sunset Strip-Hollywood Hills West Hollywood Downtown LA

- - -

$1,024 3.7% $1,600,000 -2.3% 47 14.6% -0.4%

- - - -

- - - -

Los Feliz

63

28.6% $2,762,061 64.3%

$882

24.8% $1,775,500 17.5% 58 8.1% 4.2%

Pasadena

162

35.0% $1,713,604 -2.3%

$644

5.3% $1,451,500 -4.5% 54 8.2% 2.2%

47

34.3% $1,343,556 -5.0%

$754

5.1% $1,280,500 -4.5% 40 -19.9% 5.6%

$940

3.9% $2,097,500 6.1% 66 6.7%

Silverlake-Echo Park OVERALL

1,093 21.9% $3,075,608 6.9%

07

WEST SIDE

DOM

MID CITY & THE HILLS

YOY%

EAST SIDE

Q2 2017 LOS ANGELES MARKET REPORT

NUMBER AVG. AVG. MED. OF SALES YOY% SALE PRICE YOY% PPSF YOY% SALE PRICE

Neighborhood Snapshot This page provides a snapshot of the Q2 2017 condo market conditions by neighborhood. The most

Condominium Market

notable average condo price increases occurred in Beverly Center-Miracle Mile (up 37.6% YoY), and Beverly Hills (up 15.9% YoY). Overall, the Los Angeles condo market experienced an 11.0% decrease in the number of sales, but saw robust sales growth in Downtown LA (up 47.1% YoY), and Hancock

NUMBER AVG. AVG. MED. OF SALES YOY% SALE PRICE YOY% PPSF YOY% SALE PRICE

YOY%

Brentwood

63

0.0% $1,030,725 0.5%

$659

6.3% $930,000

9.4% 56 -31.0% 2.1%

Malibu

18

12.5% $919,167

-37.3%

$638

-39.2% $922,500

-19.8% 63

Pacific Palisades

25

-7.4% $1,088,680 10.7%

$628

8.6% $1,116,000 19.3% 55 -29.1% 1.4%

100

-2.0% $1,052,472 -22.1% $839

NEGOTIABILITY

-46.2% -2.7%

-9.6% $1,035,000 -9.6% 58 -19.7% 4.0%

- - -

- - - -

- - - -

Beverly Center-Miracle Mile

25

257.1% $780,040

37.6%

$606

0.2% $740,000

33.3% 54 -15.8% 1.5%

Beverly Hills

35

9.4% $1,623,530 15.9%

$806

19.6% $1,275,000 4.5% 85 -27.1% -1.2%

Bel Air-Holmby Hills

- - -

- - - -

- - - -

Century City-Westwood

100

-29.1% $742,144

-38.7% $590

-5.7% $752,500

-14.5% 68

Hancock Park-Wilshire

61

48.8% $726,862 4.4%

$504

1.0% $675,000

2.7% 79 -6.3% -0.7%

Hollywood Hills East

10

11.1% $664,150 2.3%

$601

20.6% $705,000

11.0% 84 31.4% 2.3%

Sunset Strip-Hollywood Hills

30

3.4% $841,005 -5.6% $642

-3.8% $719,500

18.4% 66 1.1% 0.0%

-4.1% $745,000

6.6% 72 2.0% -0.2%

Beverly Hills Post Office

West Hollywood

100 2.9% $812,319 -7.6%

$635

-22.7% 2.0%

100 47.1% $800,820 -8.8% $711

7.0% $737,500

3.7% 135 48.2% -1.1%

Los Feliz

8

14.3% $651,081 4.9%

3.0% $606,500

0.6% 75 26.0% 1.5%

Pasadena

100

-60.3% $631,492

-23.1% $497

0.0%

30

114.3% $723,748

2.3%

-0.3% $1,035,000 -9.6% 122 23.0% 1.3%

805

-11.0% $859,724

-13.4% $640

Downtown LA

Silverlake-Echo Park OVERALL

$625 $513

08

1.7%

$1,116,5000 19.3% 56

$751,000

-1.8% 76

-24.8% 3.6%

-5.2%

WEST SIDE

YOY%

MID CITY & THE HILLS

Santa Monica

DOM

EAST SIDE

Q2 2017 LOS ANGELES MARKET REPORT

Park-Wilshire (up 48.8% YoY).

Bel Air-Holmby Hills -- Strong volume and price performance in one of LA’s most stately neighborhoods; total transactions increase 21.4% YoY to 51 closed deals, an 82.1% increase over Q1-17.

-- Average sale price increased 5.4% YoY to $5.14M, a new high-water mark for the neighborhood, representing a 12.5% increase over Q1-17.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$5,137,432

5.4%

$4,874,321

12.5%

$4,566,922

$937

4.1%

$899

0.2%

$935

MED. SALE PRICE

$2,465,000

9.0%

$2,261,300

4.0%

$2,370,000

NUMBER OF SALES

51

21.4%

42

82.1%

28

DOM

92

-8.1%

100

18.5%

77

2016

YOY%

2015

YOY%

2014

$5,243,962

11.6%

$4,700,144

-9.4%

$5,188,226

AVG. PPSF

$900

4.9%

$858

3.7%

$827

NUMBER OF SALES

135

-6.9%

145

16.0%

125

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

-- Median sale price increased 9.0% to $2.47M, while LA’s most desirable estates spent 8 fewer days on the market, for an average of 92 days.

Annual Performance AVG. SALE PRICE

9

Beverly Center-Miracle Mile -- Volumes in Beverly Center-Miracle Mile followed the broader market trend upward this quarter, with 59 deals recorded, a 31.1% YoY increase.

-- The neighborhood remains one of LA’s

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,855,303

-7.4%

$2,035,434

-3.8%

$1,959,527

$805

2.1%

$789

4.7%

$769

AVG. PPSF

most popular, however the healthy

MED. SALE PRICE

$1,657,500

2.4%

$1,618,700

5.2%

$1,575,000

increase in volume is tempered by the

NUMBER OF SALES

59

31.1%

45

25.5%

47

DOM

74

64.9%

45

18.3%

62

2016

YOY%

2015

YOY%

2014

$1,870,348

4.4%

$1,790,993

7.5%

$1,666,337

AVG. PPSF

$758

4.2%

$727

6.7%

$682

NUMBER OF SALES

173

8.8%

159

-3.6%

165

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$780,040

37.6%

$567,071

5.8%

$737,188

$606

0.2%

$605

5.5%

$574

fear that average sale price declined 7.4% YoY to $1.86M. Q2 2017 LOS ANGELES MARKET REPORT

-- Average PPSF for the month was recorded at $805/SF, up 2.1% YoY.

Annual Performance AVG. SALE PRICE

-- Condos tracked a similar course to Single Family homes, with 25 deals recorded during the period, an exponential 257.1% YoY increase. The caveat being, however, that 7 recorded

CONDO $500K+ AVG. SALE PRICE AVG. PPSF

deals during the same quarter last

MED. SALE PRICE

$740,000

33.3%

$555,000

6.3%

$696,000

year was extremely low.

NUMBER OF SALES

25

257.1%

7

56.3%

16

DOM

54

-15.8%

65

-41.5%

93

2016

YOY%

2015

YOY%

2014

$568,289

-3.3%

$587,727

0.7%

$583,435

$577

20.3%

$479

5.4%

$455

27

-15.6%

32

-22.0%

41

-- Average PPSF remained flat to Q2-16, while average sale price rose significantly by 37.6% to $780K, a strong indicator for luxury product in this neighborhood.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

10

Beverly Hills -- Sales volume was strong in LA’s toniest neighborhood during the second quarter, with 49 deals recorded, a 48.5% YoY increase, and 44.1% ahead of Q1-17.

-- Pricing declined during the period, however, as average sales price shed 10.3% YoY to $6.31M. -- Valuations during this incredibly

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$6,314,235

-10.3%

$7,039,712

-13.8%

$7,321,834

$1,405

3.9%

$1,352

6.7%

$1,317

MED. SALE PRICE

$5,600,000

4.2%

$5,375,000

4.4%

$5,362,500

NUMBER OF SALES

49

48.5%

33

44.1%

34

DOM

72

-1.3%

73

-34.6%

110

2016

YOY%

2015

YOY%

2014

$6,455,954

3.0%

$6,265,302

8.6%

$5,766,754

$1,334

5.5%

$1,265

11.1%

$1,138

148

-9.2%

163

2.5%

159

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,623,530

15.9%

$1,401,266

14.0%

$1,423,648

$806

19.6%

$674

20.3%

$670

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

active sales quarter also pushed ahead of Q2-16 numbers, recording $1,405/SF, up 3.9% YoY, implying that the range of transactions were at lower price points, rather than lower valuations.

-- Condo values increased at a substantial clip in LA’s most recognizable zip code, with 35 transactions recording an average PPSF of $806/SF, a 19.6% YoY increase.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

AVG. PPSF

-- The greater number of deals during

MED. SALE PRICE

$1,275,000

4.5%

$1,220,000

4.1%

$1,225,000

the period attracted higher median

NUMBER OF SALES

35

9.4%

32

29.6%

27

DOM

85

-27.1%

116

6.6%

79

2016

YOY%

2015

YOY%

2014

$1,422,409

5.5%

$1,348,568

3.3%

$1,305,491

AVG. PPSF

$686

2.4%

$670

5.1%

$637

NUMBER OF SALES

120

-4.8%

126

11.5%

113

pricing; median sales price increased 4.5% YoY to $1.28M. -- Average sales price increased at an even greater clip, pushing forward 15.9% YoY. Low inventory in Beverly Hills continues to characterize the condo market, and we expect to see both price and volume increases as new product comes online.

Annual Performance AVG. SALE PRICE

11

Beverly Hills Post Office -- More robust sales volume in this stately enclave; 46 transactions recorded during the period, a 27.8% YoY increase, and 142.1% ahead of Q1-17.

-- Average sale price increased 85.7% YoY to $5.60M, a high number attributable to the 5 transactions in excess of $10M, and 3 sales north of $20M.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$5,604,432

85.7%

$3,018,444

62.1%

$3,456,588

$991

25.2%

$791

11.0%

$893

MED. SALE PRICE

$3,445,000

40.3%

$2,455,000

37.8%

$2,500,000

NUMBER OF SALES

46

27.8%

36

142.1%

19

DOM

83

-16.3%

99

27.5%

65

2016

YOY%

2015

YOY%

2014

$3,884,007

5.0%

$3,699,170

-2.9%

$3,810,193

AVG. PPSF

$873

0.3%

$870

10.7%

$786

NUMBER OF SALES

126

-17.1%

152

3.4%

147

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

-- Median sale price increased 40.3% YoY to $3.45M.

Annual Performance AVG. SALE PRICE

12

Brentwood -- Brentwood continued its outperformance as a top luxury market during the quarter, with yet again strong sales volume. 85 transactions were recorded during the period, a 16.4% YoY increase.

-- Average sales price declined 2.5% YoY to $3.94M, but with fewer $10M+ homes transacting in Q2-17 than the prior quarter, that metric decreased 25.9%

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$3,944,009

-2.5%

$4,045,317

-25.9%

$5,322,955

$1,071

4.6%

$1,024

-5.1%

$1,128

MED. SALE PRICE

$3,125,000

5.9%

$2,950,000

-26.1%

$4,230,000

NUMBER OF SALES

85

16.4%

73

97.7%

43

DOM

63

9.4%

57

-15.0%

74

2016

YOY%

2015

YOY%

2014

$3,688,418

-0.1%

$3,693,274

4.2%

$3,544,950

AVG. PPSF

$988

1.7%

$971

5.0%

$925

NUMBER OF SALES

246

13.9%

216

-6.9%

232

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,030,725

0.5%

$1,025,864

-0.4%

$1,034,733

$659

6.3%

$620

9.1%

$604

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

from Q1-17.

-- Brentwood real estate trades, on average, faster than any of the other highest end neighborhoods. During Q2, DOM increased 6 days to an average of 63 days, still among the lowest for all highend homes.

-- Condo performance in Brentwood was flat during the quarter, with 63 units trading hands, the exact same number as during Q2-16.

-- Values, on the other hand, increased a

Annual Performance AVG. SALE PRICE

AVG. PPSF

healthy 6.3% YoY, recording an average

MED. SALE PRICE

$930,000

9.4%

$850,000

2.2%

$910,000

PPSF of $659/SF.

NUMBER OF SALES

63

0.0%

63

70.3%

37

DOM

56

-31.0%

81

-24.0%

74

2016

YOY%

2015

YOY%

2014

$999,677

17.0%

$854,063

-0.2%

$856,039

AVG. PPSF

$612

9.6%

$558

6.8%

$523

NUMBER OF SALES

220

5.8%

208

14.3%

182

-- Average sale price during the quarter remained flat to Q2-16, recording a 0.5% YoY increase to $1.03M. -- Median sale price, meanwhile, climbed 9.4% YoY to $930K, a strong indicator for the high end of this market.

Annual Performance AVG. SALE PRICE

13

Century City-Westwood -- Healthy sales volume continues to characterize the market in Century City-Westwood, with 57 transactions recorded during the second quarter, a 5.6% YoY increase, and a 32.6% uptick from Q1-17.

-- Valuations declined, however, relative to Q2-16, recording an average of $863/ SF, a 2.0% YoY decrease.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,320,711

-9.7%

$2,570,133

1.7%

$2,282,941

$863

-2.0%

$881

-1.9%

$880

MED. SALE PRICE

$2,100,000

-4.3%

$2,193,293

8.5%

$1,935,000

NUMBER OF SALES

57

5.6%

54

32.6%

43

DOM

47

11.2%

43

8.6%

44

2016

YOY%

2015

YOY%

2014

$2,277,677

5.7%

$2,154,884

7.6%

$2,003,393

AVG. PPSF

$860

5.5%

$815

5.5%

$772

NUMBER OF SALES

199

25.9%

158

-6.5%

169

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$742,144

-38.7%

$1,210,314

-39.9%

$1,235,381

$590

-5.7%

$625

-6.5%

$630

MED. SALE PRICE

$752,500

-14.5%

$880,000

-13.5%

$870,000

NUMBER OF SALES

100

-29.1%

141

-9.1%

110

DOM

68

-22.7%

88

-25.7%

92

2016

YOY%

2015

YOY%

2014

$1,203,612

3.1%

$1,167,581

-2.7%

$1,199,726

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

-- Average sale price dropped 9.7% YoY to $2.32M, while houses in the neighborhood spent a relatively low 47 days on the market compared to the other neighborhoods.

-- An uncharacteristically slow quarter for condo sales in this neighborhood, with both volumes and values in decline; in stark contrast to broader LA market for luxury.

-- With so few $1M+ condo deals recorded, average sale price dropped 38.7% to $742K. Interestingly, there were no transactions during the period at The

Annual Performance AVG. SALE PRICE

CONDO $500K+ AVG. SALE PRICE AVG. PPSF

Century, this neighborhood’s highest valued asset.

-- 100 sales were recorded during Q2-17,

Annual Performance

a 29.1% YoY decrease, while average

AVG. SALE PRICE

PPSF shed 5.7% YoY to an average of

AVG. PPSF

$618

5.2%

$588

0.5%

$585

NUMBER OF SALES

510

-6.1%

543

12.7%

482

$590/SF. -- Median sale price, perhaps the strongest indicator of the lack of highpriced deals this quarter, dropped 14.5% to $753K.

14

Downtown LA -- Sales volume in Downtown LA pushed well ahead of previous periods, with 100 deals recorded during Q2-17, 16 of which were attributed to closings at the recently completed Ten50 project

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$800,820

-8.8%

$877,653

-2.2%

$818,727

$711

7.0%

$665

4.2%

$682

AVG. PPSF

on South Grand. That represents a

MED. SALE PRICE

$737,500

3.7%

$711,000

2.1%

$722,500

47.1% increase over Q2-16, and 72.4%

NUMBER OF SALES

100

47.1%

68

72.4%

58

DOM

135

48.2%

91

20.3%

112

2016

YOY%

2015

YOY%

2014

$837,284

2.1%

$820,302

7.1%

$765,938

AVG. PPSF

$654

3.3%

$634

10.9%

$571

NUMBER OF SALES

238

-16.5%

285

2.2%

279

ahead of Q1-17.

-- Average price points dropped rather Q2 2017 LOS ANGELES MARKET REPORT

substantially to $801K, an 8.8% YoY decline, which we attribute the greater number of transactions at the lower end of the price spectrum.

-- Meanwhile, valuations pushed ahead 7.0% to $711/SF, a strong indication of value retention in the neighborhood

Annual Performance AVG. SALE PRICE

as the downtown market asserts itself as one of the city’s strongest.

15

Hancock Park-Wilshire -- Greater sales volume in one of LA’s most stately neighborhoods during the second quarter pushed valuations even higher; 76 home sales recorded in Q2-17, a 16.9% increase over Q2-16 and

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,195,287

3.6%

$2,119,924

-19.0%

$2,711,686

$717

3.1%

$696

4.7%

$685

AVG. PPSF

a 52.0% higher than Q1 of this year.

MED. SALE PRICE

$1,540,000

-6.7%

$1,650,000

-31.9%

$2,262,500

-- While average sale price rose by 3.6%

NUMBER OF SALES

76

16.9%

65

52.0%

50

DOM

69

37.2%

50

-11.2%

77

2016

YOY%

2015

YOY%

2014

$2,232,624

6.4%

$2,098,215

-7.2%

$2,261,535

AVG. PPSF

$711

4.5%

$680

3.8%

$656

NUMBER OF SALES

224

9.3%

205

6.8%

192

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$726,862

4.4%

$696,149

5.7%

$687,871

$504

1.0%

$499

3.0%

$489

MED. SALE PRICE

$675,000

2.7%

$657,000

3.8%

$650,000

NUMBER OF SALES

61

48.8%

41

84.8%

33

DOM

79

-6.3%

84

-19.6%

98

2016

YOY%

2015

YOY%

2014

$696,026

0.8%

$690,299

-2.1%

$704,776

AVG. PPSF

$494

10.9%

$445

0.3%

$444

NUMBER OF SALES

125

15.7%

108

14.9%

94

relative to Q2-16, the significant QoQ decline of 19.0% was attributed to the Q2 2017 LOS ANGELES MARKET REPORT

higher number of lower priced homes sold during the period.

-- With so many lower priced homes trading hands, the median sale price declined 6.7% YoY to $1.54M.

-- Higher demand for condos resulted in 61 sales, a 48.8% YoY increase from Q2-16.

-- Average PPSF remained constant at $504/SF, a 1.0% increase over Q2-16.

-- Average sale price, meanwhile, increased 4.4% YoY to $727K on a substantially higher number of transactions.

Annual Performance AVG. SALE PRICE

AVG. PPSF

Annual Performance AVG. SALE PRICE

16

Hollywood Hills East -- Healthy sales volume in the neighborhood drove valuations up 6.4% YoY to $712/SF on 42 deals, a 20.0% YoY increase in total transactions.

-- Average sale price remained relatively consistent at $1.59M, down 1.9% YoY, while median price declined 4.9% YoY to $1.40M.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,590,103

-1.9%

$1,620,214

-4.3%

$1,661,695

$712

6.4%

$670

6.4%

$670

MED. SALE PRICE

$1,403,000

-4.9%

$1,475,000

-8.8%

$1,539,000

NUMBER OF SALES

42

20.0%

35

55.6%

27

DOM

62

-7.0%

67

-9.3%

69

2016

YOY%

2015

YOY%

2014

$1,605,531

8.2%

$1,484,422

-3.7%

$1,541,382

AVG. PPSF

$663

7.4%

$617

3.8%

$595

NUMBER OF SALES

108

0.9%

107

13.8%

94

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$664,150

2.3%

$649,444

10.7%

$600,000

$601

20.6%

$498

12.3%

$535

AVG. PPSF

Q2 2017 LOS ANGELES MARKET REPORT

-- Strong sales activity in Hollywood Hills East continues underscore the valuation divide between other luxury hillside locales, such as Sunset Strip-Hollywood Hills, Beverly Hills, and Brentwood.

-- The market for condos in Hollywood Hills East continues to be extremely limited, with 10 transactions recorded during Q2-17.

-- Average YoY sales price increased

Annual Performance AVG. SALE PRICE

AVG. PPSF

2.3% to $664K; average PPSF increased

MED. SALE PRICE

$705,000

11.0%

$635,000

17.5%

$600,000

20.6% YoY to $601/SF.

NUMBER OF SALES

10

11.1%

9

400.0%

2

DOM

84

31.4%

64

46.8%

58

2016

YOY%

2015

YOY%

2014

$651,682

10.6%

$589,369

0.6%

$585,692

$476

17.0%

$407

-7.7%

$441

22

22.2%

18

38.5%

13

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

17

Los Feliz -- Following a sluggish Q1-17 in the east side’s most coveted neighborhood, we indicated that we’d be keeping our eyes on what could be slowing market dynamics, but Q2 performance in Los

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,762,061

64.3%

$1,681,357

41.0%

$1,958,814

$882

24.8%

$706

29.0%

$683

AVG. PPSF

Feliz has be anything but sluggish.

MED. SALE PRICE

$1,775,000

17.5%

$1,510,000

10.8%

$1,602,500

-- The second quarter was character-

NUMBER OF SALES

63

28.6%

49

125.0%

28

DOM

58

8.1%

53

-33.5%

87

2016

YOY%

2015

YOY%

2014

$1,935,386

-0.8%

$1,950,324

-0.8%

$1,966,107

AVG. PPSF

$688

2.7%

$669

1.7%

$658

NUMBER OF SALES

184

10.2%

167

4.4%

160

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$651,081

4.9%

$620,714

-3.2%

$672,500

$625

3.0%

$606

6.9%

$584

MED. SALE PRICE

$606,500

0.6%

$603,000

-9.8%

$672,500

NUMBER OF SALES

8

14.3%

7

300.0%

2

DOM

75

26.0%

60

-41.0%

128

2016

YOY%

2015

YOY%

2014

$636,996

3.8%

$613,517

7.2%

$572,083

$589

11.8%

$527

5.0%

$502

26

13.0%

23

91.7%

12

ized by strong turnaround in sales volume and valuations, with 63 deals Q2 2017 LOS ANGELES MARKET REPORT

recorded, a 28.6% YoY increase, and 125.0% ahead of ‘sluggish’ Q1-17.

-- Average sale price shot up 64.3% YoY to $2.76M, with 14 deals recorded greater than $3M (only 4 such deals were recorded in Q1-17) -- Average PPSF climbed 24.8% YoY

Annual Performance AVG. SALE PRICE

to $882/SF, the highest value for the benchmark on record.

-- Of note, the Cecil B. DeMille estate was acquired by Angelina Jolie during the period for $24.5M.

AVG. PPSF

-- Los Feliz continues to have a limited supply of condos, with little new inventory in the pipeline. Average sales price increased 4.9% YoY to $651K. -- There were only 8 sales in the second quarter of 2017, up from 7 in Q2-16, driving the average PPSF up 3.0% to $625/SF.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

18

Malibu -- 55 deals recorded during the period drove an average sales price increase of 20.6% YoY in Malibu.

-- Home sale prices skewed even more toward the higher end of the

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$5,380,649

20.6%

$4,460,586

18.3%

$4,548,717

$1,445

-7.9%

$1,568

13.4%

$1,274

AVG. PPSF

spectrum, recording a median price of

MED. SALE PRICE

$3,250,000

3.2%

$3,150,000

8.9%

$2,985,000

$3.25M, a 3.2% increase over Q2-16.

NUMBER OF SALES

55

-3.5%

57

17.0%

47

DOM

133

15.2%

115

-8.0%

144

2016

YOY%

2015

YOY%

2014

$4,378,714

15.5%

$3,792,512

-7.1%

$4,080,837

$1,300

18.5%

$1,097

-4.8%

$1,153

216

0.9%

214

3.9%

206

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$919,167

-37.3%

$1,465,031

-6.1%

$978,635

$638

-39.2%

$1,050

1.3%

$630

MED. SALE PRICE

$922,500

-19.8%

$1,150,000

-7.8%

$1,000,000

NUMBER OF SALES

18

12.5%

16

100.0%

9

DOM

63

-46.2%

117

-46.9%

118

2016

YOY%

2015

YOY%

2014

$1,264,139

22.3%

$1,033,801

-24.7%

$1,372,392

$877

14.0%

$769

-23.5%

$1,005

44

-13.7%

51

37.8%

37

-- Average PPSF fell by 7.9% during the quarter, netting out at $1,445/SF. Q2 2017 LOS ANGELES MARKET REPORT

SINGLE FAMILY $1M+

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

-- Despite higher volume, condo values took a hit during the second quarter, recording an average sale price of $919K, down 37.3% YoY. -- Valuations tracked a similar course, shedding 39.2% YoY to $638/SF.

CONDO $500K+ AVG. SALE PRICE AVG. PPSF

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

19

Pacific Palisades -- Pricing increased during Q2-17; average sales price jumped 24.1% YoY to $4.12M, while PPSF for the month recorded an average of $1,219/SF, up 22.0% YoY.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$4,123,663

24.1%

$3,323,627

1.9%

$4,045,637

$1,219

22.0%

$999

15.7%

$1,054

AVG. PPSF

-- Sales volume rose dramatically as

MED. SALE PRICE

$3,179,488

27.2%

$2,500,480

9.8%

$2,895,000

well, with 88 home sales recorded

NUMBER OF SALES

88

22.2%

72

54.4%

57

DOM

68

10.0%

62

-12.6%

78

2016

YOY%

2015

YOY%

2014

$3,543,456

2.8%

$3,448,279

8.0%

$3,192,041

$1,039

2.7%

$1,013

9.3%

$926

258

-10.7%

289

-4.3%

302

during the period, a 22.2% YoY increase.

Q2 2017 LOS ANGELES MARKET REPORT

-- The median sale price rose by 27.2% to $3.18M as home sales skewed significantly towards the higher end of the price spectrum in Q2-17.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

-- Pricing metrics for condos in the Palisades rose in Q2-17, while the number

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

of sales transactions declined by 7.4%

AVG. SALE PRICE

$1,088,680

10.7%

$983,352

-6.1%

$1,159,364

$628

8.6%

$578

2.7%

$611

YoY to 25 deals.

-- The average sales price in the oceans-

AVG. PPSF

ide community increased 10.7% YoY to

MED. SALE PRICE

$1,116,500

19.3%

$936,000

-2.9%

$1,150,000

$1.09M, while average PPSF recorded

NUMBER OF SALES

25

-7.4%

27

127.3%

11

DOM

55

-29.1%

78

-33.3%

83

2016

YOY%

2015

YOY%

2014

$1,052,627

3.0%

$1,022,307

9.4%

$934,233

$613

-0.8%

$618

15.4%

$535

82

32.3%

62

-8.8%

68

an average of $628/SF, up 8.6% YoY.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

20

Pasadena -- Strong sales volume in Pasadena underscored stronger valuations in the city’s most quintessential suburb.

-- 162 single family transactions were recorded during the period, a 35.0%

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,713,604

-2.3%

$1,753,422

-12.3%

$1,953,255

$644

5.3%

$611

2.9%

$625

AVG. PPSF

YoY increase, at an average PPSF of

MED. SALE PRICE

$1,451,000

-4.5%

$1,520,000

-8.6%

$1,587,500

$644/SF, a 5.3% YoY increase.

NUMBER OF SALES

162

35.0%

120

107.7%

78

DOM

54

8.2%

50

-13.9%

63

2016

YOY%

2015

YOY%

2014

$1,677,121

-5.2%

$1,769,100

0.0%

$1,769,608

$609

1.4%

$600

1.0%

$594

415

2.5%

405

24.2%

326

-- Average sale price declined slightly by 2.3% YoY to $1.71M. Q2 2017 LOS ANGELES MARKET REPORT

SINGLE FAMILY $1M+

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

-- Out-sized sales sales volume in 2016 continued to normalize in Q2-17, and

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

the 60.3% YoY decline to 100 sales is

AVG. SALE PRICE

$631,492

-23.1%

$821,507

-18.6%

$775,390

$497

0.0%

$497

-2.0%

$507

more reflective of the steady state we expect to see in this market.

AVG. PPSF

-- Valuations held steady to Q2-16,

MED. SALE PRICE

$1,116,500

19.3%

$936,000

-2.9%

$1,150,000

recording an average of $497/SF.

NUMBER OF SALES

100

-60.3%

252

3.1%

97

DOM

56

-24.8%

74

-37.5%

90

2016

YOY%

2015

YOY%

2014

$766,704

0.5%

$762,738

1.2%

$753,902

AVG. PPSF

$487

4.9%

$464

0.5%

$462

NUMBER OF SALES

854

123.6%

382

7.6%

355

Annual Performance AVG. SALE PRICE

21

Santa Monica - Santa Monica home values experienced steady growth during Q2-17, as the 68 deals recorded an average of $1,211/SF, a 4.0% YoY increase.

- Average sales pricing increased by

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,962,069

5.5%

$2,806,641

10.8%

$2,673,666

$1,211

4.0%

$1,165

-5.3%

$1,280

AVG. PPSF

5.5% YoY to $2.96M, while median sale

MED. SALE PRICE

$2,307,500

4.9%

$2,200,000

6.1%

$2,175,500

price rose 4.9% YoY to $2.31M, driven

NUMBER OF SALES

68

1.5%

67

9.7%

62

DOM

41

4.4%

39

-31.0%

59

2016

YOY%

2015

YOY%

2014

$2,952,788

5.5%

$2,797,541

5.4%

$2,653,358

$1,140

-2.2%

$1,165

13.1%

$1,031

222

-3.9%

231

1.3%

228

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,052,472

-22.1%

$1,351,690

-13.9%

$1,222,045

$839

-9.6%

$928

-3.5%

$870

by higher demand for larger homes in the area.

Q2 2017 LOS ANGELES MARKET REPORT

SINGLE FAMILY $1M+

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

-- Condos tracked an opposite course to the single-family market during the second quarter, recording 100 transactions, two fewer than Q2-16.

-- Valuations were most affected, how-

AVG. PPSF

ever, as average PPSF declined 9.6%

MED. SALE PRICE

$1,035,000

-9.6%

$1,145,000

5.4%

$982,000

YoY to $839/SF. We attribute this lower

NUMBER OF SALES

100

-2.0%

102

44.9%

69

DOM

58

-19.7%

72

-26.4%

78

2016

YOY%

2015

YOY%

2014

$1,227,770

-1.1%

$1,242,003

-1.1%

$1,256,338

AVG. PPSF

$885

3.3%

$857

2.0%

$840

NUMBER OF SALES

394

-14.7%

462

3.1%

448

value to significantly fewer deals at The Seychelle and The Waverly during the period, this neighborhood’s benchmark buildings for luxury.

Annual Performance AVG. SALE PRICE

22

Silverlake-Echo Park -- Demand for single family properties surged during the second quarter, with 47 transactions recorded, a 34.3% YoY increase.

-- PPSF climbed 5.1% in Q2-17 to $754/

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$1,343,556

-5.0%

$1,413,607

1.9%

$1,318,719

$754

5.1%

$717

25.5%

$601

AVG. PPSF

SF, the highest valuation on record for

MED. SALE PRICE

$1,280,000

-4.5%

$1,340,000

5.6%

$1,212,500

any individual quarter.

NUMBER OF SALES

47

34.3%

34

67.9%

28

DOM

40

-19.9%

50

-15.0%

48

2016

YOY%

2015

YOY%

2014

$1,350,590

0.1%

$1,349,057

-8.8%

$1,479,648

AVG. PPSF

$695

8.8%

$639

4.0%

$614

NUMBER OF SALES

140

59.1%

88

2.3%

86

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$723,748

2.3%

$707,764

-3.8%

$752,491

$513

-0.3%

$514

-1.1%

$518

MED. SALE PRICE

$1,035,000

-9.6%

$1,145,000

5.4%

$982,000

NUMBER OF SALES

30

114.3%

14

25.0%

24

DOM

122

23.0%

99

-25.9%

165

2016

YOY%

2015

YOY%

2014

$687,390

-3.7%

$713,815

19.0%

$599,910

$515

2.5%

$502

20.1%

$418

58

26.1%

46

100.0%

23

-- Median sale price dipped 4.5% YoY to $1.28M, which is to be expected in an Q2 2017 LOS ANGELES MARKET REPORT

environment where volume is surging and more lower-priced homes are trading hands.

-- Condo volumes more than doubled in Q2-17, recording 30 deals during the period.

-- Strong demand continued to drive pricing on the eastside; average sales price rose 2.3% YoY in Q2-17 to $724K. -- Average PPSF held constant to Q2-16 at $513/SF, while median pricing declined by 9.6% YoY to $1.04M.

Annual Performance AVG. SALE PRICE

CONDO $500K+ AVG. SALE PRICE AVG. PPSF

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

23

Sunset Strip-Hollywood Hills - There was a tremendous run-up in home sale volume in the Hollywood Hills during the second quarter. 112 deals were recorded during the period, a 30.2% YoY increase.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,451,310

-12.5%

$2,801,537

-5.9%

$2,604,663

$909

2.0%

$892

6.0%

$858

AVG. PPSF

- Average sale price dropped in Q2-17,

MED. SALE PRICE

$2,050,000

7.5%

$1,907,500

6.4%

$1,927,500

recording an average of $2.45M, a 12.5%

NUMBER OF SALES

112

30.2%

86

19.1%

94

DOM

69

-1.8%

70

-18.9%

85

2016

YOY%

2015

YOY%

2014

$2,820,695

9.1%

$2,586,309

-1.7%

$2,631,182

AVG. PPSF

$888

8.1%

$821

0.5%

$818

NUMBER OF SALES

341

-9.8%

378

8.3%

349

YoY decline.

- Valuations, meanwhile, improved 2.0% Q2 2017 LOS ANGELES MARKET REPORT

YoY to $909/SF, while median sale price improved 7.5% YoY to $2.05M.

Annual Performance AVG. SALE PRICE

-- Condo metrics held relatively constant in this neighborhood, as supply

CONDO $500K+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

remained very limited in the Hills. 30

AVG. SALE PRICE

$841,005

-5.6%

$891,276

-50.4%

$1,694,588

$642

-3.8%

$668

-13.8%

$746

MED. SALE PRICE

$719,500

18.4%

$607,500

3.5%

$695,000

NUMBER OF SALES

30

3.4%

29

76.5%

17

DOM

66

1.1%

65

-28.9%

92

2016

YOY%

2015

YOY%

2014

$844,736

-17.3%

$1,021,413

-2.7%

$1,050,197

$620

-4.8%

$651

-5.1%

$686

78

39.3%

56

47.4%

38

condo transactions were recorded in Q2-17, a 3.4% YoY increase.

-- With fewer trades this quarter at marquis buildings like Sierra Towers, the average price recorded during the quarter declined rather significantly

AVG. PPSF

by 50.4% from Q1-17, but by a more conservative 5.6% decline YoY from Q2-16.

-- Valuations held steady, shedding only 3.8% YoY, and closing out the quarter at an average PPSF of $642/SF.

Annual Performance AVG. SALE PRICE AVG. PPSF NUMBER OF SALES

24

West Hollywood -- Single family home sales in West Hollywood were very strong in the second quarter.

-- Average sales pricing rose 17.4% YoY to $2.14M, while average PPSF climbed 3.7% to $1,024/SF. -- Sales volume was strong during the

Q2 2017 LOS ANGELES MARKET REPORT

period, up 17.9% YoY to 33 closed sales.

SINGLE FAMILY $1M+

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

AVG. SALE PRICE

$2,136,453

17.4%

$1,820,025

16.2%

$1,839,020

$1,024

3.7%

$988

20.5%

$850

MED. SALE PRICE

$1,600,000

-2.3%

$1,637,000

3.2%

$1,550,000

NUMBER OF SALES

33

17.9%

28

43.5%

23

DOM

47

14.6%

41

-36.2%

74

2016

YOY%

2015

YOY%

2014

$1,869,290

1.3%

$1,845,990

17.6%

$1,569,292

AVG. PPSF

$951

6.9%

$889

8.5%

$820

NUMBER OF SALES

123

8.8%

113

25.6%

90

Q2 2017

YOY%

Q2 2016

QOQ%

Q1 2017

$812,319

-7.6%

$879,548

-19.3%

$1,006,548

$635

-4.1%

$663

-8.1%

$691

MED. SALE PRICE

$745,000

6.6%

$699,000

3.6%

$719,000

NUMBER OF SALES

100

-20.0%

125

3.1%

97

DOM

72

2.0%

70

3.8%

69

2016

YOY%

2015

YOY%

2014

$873,139

2.7%

$849,802

6.3%

$799,279

AVG. PPSF

$656

5.2%

$623

7.4%

$580

NUMBER OF SALES

396

2.9%

385

29.2%

298

AVG. PPSF

Annual Performance AVG. SALE PRICE

-- Condo sales volume was down in 20.0% YoY to 100 transactions in Q2-17, a relatively small number of deals for one of LA’s most active condo markets.

-- PPSF declined 4.1% YoY in Q2-17, with average values recording $635/SF for the period, while average unit price also declined 7.6% to 812K.

CONDO $500K+ AVG. SALE PRICE AVG. PPSF

-- With 8500 Sunset removed from the condo pipeline in West Hollywood, we will have to wait another year or so for other new development inventory to enter the market.

Annual Performance AVG. SALE PRICE

25

Q2 2017 LOS ANGELES MARKET REPORT

research@compass.com

team@urbanhillsides.com

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