SANTA MONICA REAL ESTATE SNAPSHOT ~ DECEMBER 2011 > DEFYING THE TRENDS

By Jodi Summers

Residential Real Estate in Santa Monica is like a game of Chutes and Ladders … some ups, some downs. Our game on the West Side tends to be somewhat more entertaining and contrary than most of the rest of the real estate market. For example, in California in October, sales volume is up, prices are down. Locally, volume is down prices are up.

More details. Statewide, October sales of existing single-family homes climbed up by +8.5% compared with a year ago, according to the California Association of Realtors (CAR).

In Santa Monica, November sales of residential real estate slide down 23% vs. the year prior, according to Clarus Market Metrics..

Throughout California, the median price continued its decline, falling by -8.9% over the year to $278,060. Nov-10 vs. Nov-11 in Santa Monica, the median sold price is up 3% > from $827,000 to $853,000 > a gain of $26,000. Congratulations to all who have profited.

Here’s what happened around the rest of Southern California:

* Los Angeles County: unit sales edged up by +1.0% over the year to October, but the median price fell by -7.8% to $307,970.

* Ventura County: existing home sales jumped by +14.9%, while the median price declined by -6.5% to $399,160.

* Orange County: sales fell by -3.7%, while the median price dropped by -6.7% to $484,390.

* San Diego County: unit sales edged up by +1.7%, but the median price was down by -7.1% to $357,380.

* Riverside County: sales of existing homes dipped by -0.7% and the median price declined by -4.6% to $195,760.

* San Bernardino County: sales increased by +4.3%, while the median price fell by -5.8% to $132,210.

Statewide, the price decline from September to October was 3.3%. CAR notes that an autumn decline is typical, but the recent noteworthy slip is due, in part, to the lower Fannie, Freddie and FHA conforming loan limits that launched October 1st. The lower loan limits make it more difficult to obtain financing for higher priced homes > thus the bungee fall in sales volume in Santa Monica (from 48 units during 9-11 to 30 units in 10-11).

Fannie + Freddie shift have resulted in a change in the mix of sales price points to the lower end of the price spectrum, thereby pushing down the median price. Pocket economics.

Other curious coastal real estate contrasts:

The inventory of unsold single-family detached homes in California was 5.3 months in September, down from 6.2 months in October 2010. Los Angeles County found itself with a 5.7 month supply of single-family homes in October (compared with 6.4 months a year ago). In Santa Monica, we’ve dropped from 7.3 months of inventory in 11-10 to 4.7 months in 11-11, an impressive slide of 36%.

Santa Monica is a microcosm of the West Side. Buyers are complaining that they do not have enough property options because the number of properties for sale is down 32%.

There’s not enough real estate for sale. Let the idea warm you like the morning sun. If you have been thinking of selling residential real estate, now is a great time because of the lack of options. Seller / buyer market parity @ 3.7 months of inventory. Santa Monica currently sits @ 4.7 month stockpile of residential real estate. We are closing in on a level and balanced real estate market. Yeah!

We’re here to help you with your property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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https://www.terradatum.com/agentmetricsonline/report_chart_view.td

http://www.car.org/newsstand/newsreleases/2011newsreleases/octsalesprice/

http://www.laedc.org/eedge/index.html#2

http://www.santamonicapropertyblog.com/?p=4049

http://www.toy-tma.com/wp-content/uploads/2011/01/chutes-ladders-board-580x589.gif

http://www.cartoonstock.com/newscartoons/cartoonists/rha/lowres/rhan456l.jpg