Los Angeles Westside Sales Activity for the Last 3 Months

Sales on the Westside for all areas according to the Multiple Listing Service rose well above 600,000 in the last 3 months; 15% ranged above $2mm, 30% were in the $900,000 to $1,999,000; 40% were in the $500,000-$899000, and the rest below $499,000.  Here are some sales and properties in escrow for selected areas:

Santa Monica currently has 102 in escrow; in the last 3 months 116 leases sold, and 163 homes and condos sold, approximately half were above $900,000.

Pacific Palisades has 53 in escrow and 55 sales in the last 3 months; Marina Del Rey 61 sales, 55 in escrow; Playa Vista has 39 in escrow and  had 19 sales; Venice 50 sales and 49 in escrow; Mar Vista had95 sales and 168 in escrow; Playa Del Rey had 31 sold and 35 in escrow. (Feel free to e mail me if you want any specific information).

Per the California Assoc. of Realtors economics group, consumer confidence in California rose in May and part of June to its highest level this year.  Housing starts were up compared with the previous month by 17 %.  They are predicting stabilization in the housing market. Something to consider--here on the Westside is that the predictions of further declines in home prices as a result of those difficult mortgages-the option arm  and Alt A’s, “resetting” has little impact here as the majority of those mortgages were in the less than $417,000 “conforming” loans-these were not prevalent on the Westside.

Everyday people say-so there are great buys-well no one can get a loan anyway, isn’t that right? Wrong.  Loans are being made every day Fannie Mae is buying loans up to $729,500 meaning the loan is “conforming”; there are great banks offering 20% down loans up to $2mm and some at 10% down.
Every day I hear buyers who have a fixed idea of what a property is worth, but play the waiting game with the seller. They say we will not make an offer because it would “insult” the seller. However if one approaches armed with an analysis, not just of recent sales, but with detailed knowledge of those homes sales-meaning-did they redo the kitchen, the baths, what about the roof, plumbing-there are reasons why homes command a certain price in any market.  It takes work, to make these cases to the seller, but it is worth the effort to achieve a just price.  The buyer does not have to wait to live in their dream home if they take this approach.

Per hard data from the Cal. Assoc of Realtors, in the last 40 years the annual price increase for the average homeowner who stays about 5 years in a home is 12% per year.  Timing the market and waiting for prices to begin rising consistently is not as viable as one may think as statistics lag the market.