Hollywood Auctions Jump to 68% Clearance as Inventory Tightens

Hollywood auction clearance rates climbed from 52 percent in early June to 68 percent by July 9.

The increase arrives as mortgage rates hover near 6.4 percent and buyers weigh global supply shocks that have lifted energy costs since late May. Local agents report more owner-occupiers entering bidding than investors, a change that has shortened days on market for single-family homes under $2 million.

Neighborhood Sales Patterns

Properties along Franklin Avenue in the Hollywood Hills and on Cahuenga Boulevard east of Vine Street accounted for 14 of the 27 lots offered at the June 28 auction run by the Hollywood Property Owners Alliance. Eight of those 14 sold on the day, pushing the monthly clearance figure higher than the 61 percent recorded in the same period last year. The Hollywood Chamber of Commerce noted that three parcels near the Capitol Records building also cleared above reserve after two prior passes.

Data compiled by local title company First American DataTree shows the median sold price reached $1.85 million last month, up $120,000 from May. Days to contract averaged 19 for cleared lots, compared with 27 in the prior four-week window. No lots on the July 9 schedule remained unsold after the final call.

Next Steps for Buyers and Sellers

Agents at local firms advise sellers to set reserves no more than 5 percent above recent comparable sales on the same block. Prospective buyers should register for the next scheduled auction on July 23 at the Hollywood Roosevelt and review the updated inventory list posted by the Hollywood Property Owners Alliance on its website each Friday.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.