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Los Angeles home sales declined last year, and it could shift the market in favor of buyers in 2019. According to a report from Pacific Union, home sales in Los Angeles home sales dropped 18% in the second half of 2018 after pricing surge 14% in the spring. As a result, the city began posting inventory increase in the late fourth quarter of the year. The increase in inventory led to 34% of homes reducing pricing in in December, followed by 30% of marketed homes reducing prices in January. These are the largest reductions in the past three years, signaling a turning market.

“I definitely think it was the combination of strong price growth in early 2018 combined with declining inventory, which created a very competitive market,” Selma Hepp, chief economist and VP business intelligence at Pacific Union, tells GlobeSt.com. “I don’t think buyers were expecting so much competitive this late in the cycle so it may have scared them away. Of course, economic and political rhetoric at the end of the year fueled the fears that we are heading for a downturn. However, price growth has also led to further deterioration of affordability, which has been the Achilles heel of the L.A. market.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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