Why L.A. condo sales have slumped to a 20-year low

"Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February - the worst start to the year since 2005."

"Stubbornly high home-loan rates, a decline in the construction of new units, and economic angst are all keeping people and property developers from doing more deals, said Richard Green, director of the Lusk Center for Real Estate at USC."

""When the housing market softens, and it has, condos usually go softer faster than single-family homes," he said. "People prefer single-family houses to condos.""

"California's tough regulations, high construction costs, and a 10-year liability window for homeowners associations have scared developers away from building condos, favoring rental apartments instead."

Condo sales in Los Angeles fell to a more than 20-year low, with fewer than 2,000 units sold in January and February. Mortgage rates remain stubbornly high, homeowners association fees are rising, and investors are cautious, reducing buyer interest. Median condo prices dropped about 4.5% year over year in February, while single-family home prices fell less. Cooling condo sales may signal broader market weakness because condos tend to soften faster than single-family homes. California regulations, high construction costs, and a 10-year liability window for homeowners associations discourage developers from building condos, pushing them toward rental apartments instead. Median rents have also fallen to a four-year low.

Read at Los Angeles Times