Los Angeles Real Estate Blog

The San Pedro Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

During the Winter season, San Pedro home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 212 homes for sale in San Pedro and 18 sold. Translation, under current market conditions, in any given month, you have about a 1 in 12 chance of selling your home.

In other words, when pricing your home, the practice of adding a "Pad" or "Cushion" to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today's market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What's Happening:
On February 1, 2008, there were 212 active listings for sale in the San Pedro Market (Area 179-193): 116 Houses; 30 Townhouses; and 66 Condominiums.

In the past year, there were 423 homes sold in San Pedro (between 2.01.07 and 1.31.08): 243 Houses; 75 Townhouses; and 106 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.0 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 172 days, Townhouses will be on the market an average of 144 days, and Condominiums should be on the market an average of 224 days.

Market Recap for the Month of January 2008
When one compares the January results with the yearly result, we find that there is an approximately 11.7 month inventory of homes for sale in San Pedro.

Broken down by specific property type, we find that there is a 19.3 month inventory of Houses, a 5 month inventory of Townhouses, and a 11 month inventory of Condominiums on the market in San Pedro. (Based on current absorption rates).

How should a Seller approach the market? The key in today's market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the San Pedro and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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San Pedro Home Sales by the Numbers
18 sold in January 2008
48 sold in January 2007

212 Current Active Listings
116 Houses
30 Townhouses
66 Condos

18 Sold in January 2008
6 Houses
6 Townhouses
6 Condos

32 Expired in January 2008
18 Houses
4 Townhouses
10 Condos

34 Contingent & Pending in January 2008
22 Houses
3 Townhouses
9 Condos

48 Sold in January 2007
28 Houses
8 Townhouses
12 Condos

26 Sold in January 2006
11 Houses
7 Townhouses
8 Condos

56 Sold in January 2005
29 Houses
17 Townhouses
10 Condos

67 Sold in January 2004
45 Houses
10 Townhouses
12 Condos

48 Sold in January 2003
27 Houses
8 Townhouses
13 Condos

66 Sold in January 2002
32 Houses
15 Townhouses
19 Condos

48 Sold in January 2001
26 Houses
4 Townhouses
18 Condos

48 Sold in January 2000
32 Houses
10 Townhouses
6 Condos

15 Expired in January 2007
10 Houses
1 Townhouses
4 Condos

21 Expired in January 2006
16 Houses
2 Townhouses
3 Condos

11 Expired in January 2005
8 Houses
0 Townhouses
3 Condos

1 Expired in January 2004
1 Houses
0 Townhouses
0 Condos

3 Expired in January 2003
1 Houses
2 Townhouses
0 Condos

12 Expired in January 2002
12 Houses
0 Townhouses
0 Condos

15 Expired in January 2001
7 Houses
5 Townhouses
3 Condos

21 Expired in January 2000
13 Houses
4 Townhouses
4 Condos

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About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com