REAL ESTATE MARKET REPORT Glendale, CA December 2008

Market IndexA market index of above 1.20 is a seller's market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer's market.

The Market Index back up 0.39 TEN points from 0.29 compared to 0.16 last year.

New Listings - 41 new listings this month, compared to 53 last month, versus 49 a year ago.

New Pending Listings - 42 listings entered escrow, the same for the last three months, compared to 35 in 2007.

Pending Ratio - 1.02, the highest this year. A year ago it was 0.71.

Listing Inventory - 248 listings, down from 295 homes last month. In 2007 we had 354 listings.

Sold Listings - 55 homes sold, compared to 43 last month and 54 last year. Watch for this to rise due to the high pending rate.

Average Sale Price - Declined again to $550,635 down 18.6% from last year.

Price Per Square Foot - After three months of increases it dropped in December to $336.99. Although down 10.5% from December 2007, it will be very interesting to see what the rate is after these listings currently in escrow close.

Conclusions

As the Pending Ratio continues to rise, closed sales will increase next month and the month following. More pending listings, combined with the steady decrease in listing inventory and the recent drop in interest rates are likely to put pressure on prices.

The economy is having an affect on the market, and as the government buys mortgage-backed securities, lenders will need to lend more money to make money. If the stimulus package works, expect lower interest rates.

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