Condo Prices in DTLA Plummet

Erin Kennelly: “With increasing competition and shifting market conditions, there will be winners and losers.”

LOS ANGELES—Condo prices in Downtown Los Angeles dropped dramatically last month making for a very poor start to the year, according to the latest the Mark Co. Price Index. Prices were down an average of 13% year over year and more then $100 per square foot, coming in at an average of $701 as opposed to $803 in December.

“January is always the weakest month of the year,” Erin Kennelly, director of research at the Mark Co., tells GlobeSt.com. “I think it was especially weak this year because the newest, most expensive units in Downtown Los Angeles are only available for presales and will not close escrow until later this year. I think prices will begin to recover in February or March. Another surge in prices is likely when Metropolis begins to close sales and those prices become public record.”