Johnny Burke

Since the beginning of April there were 29 sales of single family homes(SFR) in the West Hollywood area, and 37 YTD. Inventory using the last 5 months data puts supply at 15.3 months, and YTD data : 19.3 months. The average $/SF for this period was $592/SF List-$570/SF Sold, down 22% from the 2006 peak of $731/SF Sold. Not a great improvement considering the amount of chatter among those calling the bottom of the market.

There were 140 condo sales in West Hollywood since April, and 186 YTD. Using absporption rates of 28 sales/mo since April, and 23 sales/mo YTD Weho condo inventory is at 8 and 9.7 months supply respectively. While shrinking supply numbers are encouraging, please keep in mind these numbers do not include pocket listings and bank owned property not currently listed with a broker.

Since April, there have been 64 sales of single family homes in the Beverly Center-Miracle Mile area, and 90 YTD. At $ 491/SF List/$ 463/SF Sold, current SFR inventory is at 6.5 months using data for the last 5 months, and 7.4 months YTD.

Condos: 20 sales since April, 36 YTD., $465/SF List/$433/SF Sold, yeilding inventory numbers of 12 and 10.6 months respectively. While the SFR market has picked up, suggesting a "normal" market of about 6-7 months, condo inventory has increased in the same period. Please note these numbers do not include pocket listings, or bank owned property not actively listed.

I have included a list from a recent article from the Reverse Mortgage Daily that lists the top 10 wholesale reverse mortgage lenders for the past year. I've heard from more than one mortgage pro that reverse mortgages may eventually go the way of the subprime loan. The idea here is with the current amount of baby boomers reaching retirement age , combined with declining home equity, lenders will have to tighten underwriting standards, thus lowering payments to homeowners to reflect the risks.

The Home Ownership Moves The Economy (HOME) act ( HR 2801) is a bill which if passed, will extend the current tax credit into 2010, and allow all homeowners to take advantage of the credit. Read more here.

Since April, there have been 62 sales this season of single family homes in the Hancock Park-Wilshire area. That is about 13.7 per month, and with 170 active listings that puts inventory at 12.4 months supply- up from 8-9 months from the April-May period. The average $/sq.ft was $474 list/$436 sold- off about 22% from the 2006 peak of $ 564list/$556 sold.

There were 72 condo sales in the same period, or about 16 per month, with 167 active listings which translates to inventory of 10.4 months supply. This number is also up from 8-9 months supply from April-May as well. So far, the average $/sq. ft. for condos is $352 list/$319 sold this season, down about 30% from the 2006 peak of $463 list/$455 sold.

Notice that not only are $/sq.ft numbers down, but also the spread between list and sold figures have increased. A shrinkage of this spread will be as telling as the inventory numbers in the future. If you are considering selling your property in this market, these numbers should be taken into consideration, especially with increasing inventory and homes currently selling for about 90% of what they are listed at.