Los Angeles Real Estate Blog

The Hawthorne Real Estate Market Authority

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

During the Spring season, Hawthorne 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 171 homes for sale in Hawthorne and 10 sold. Translation, under current market conditions, in any given month, you have about a 1 in 17 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 March 1, 2008, there were 171 active listings for sale in the Hawthorne Market (Areas 107-111): 143 Houses; 17 Townhouses; and 11 Condominiums.

In the past year, there were 225 homes sold in Hawthorne (between 3.01.08 and 2.29.08): 194 Houses; 24 Townhouses; and 7 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 1.3 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 265 days, Townhouses will be on the market an average of 255 days, and Condominiums should be on the market an average of 566 days.

Market Recap for the Month of February, 2008
When one compares the February results with the yearly result, we find that there is an approximately 17.1 month inventory of homes for sale in Hawthorne.

Broken down by specific property type, we find that there is a 15.8 month inventory of Houses, a 17 month inventory of Townhouses, and a 0 month inventory of Condominiums on the market in Hawthorne. (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 Hawthorne 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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Hawthorne Home Sales by the Numbers
10 sold in February 2008
22 sold in February 2007

171 Current Active Listings
143 Houses
17 Townhouses
11 Condos

10 Sold in February 2008
9 Houses
1 Townhouses
0 Condos

21 Contingent & Pending in February 2008
20 Houses
1 Townhouses
0 Condos

15 Expired in February 2008
13 Houses
0 Townhouses
2 Condos

22 Sold in February 2007
21 Houses
1 Townhouses
1 Condos

18 Sold in February 2006
15 Houses
2 Townhouses
1 Condos

31 Sold in February 2005
28 Houses
2 Townhouses
1 Condos

33 Sold in February 2004
24 Houses
5 Townhouses
2 Condos

17 Sold in February 2003
14 Houses
3 Townhouses
0 Condos

28 Sold in February 2002
24 Houses
4 Townhouses
0 Condos

33 Sold in February 2001
31 Houses
1 Townhouses
1 Condos

20 Sold in February 2000
20 Houses
0 Townhouses
0 Condos

8 Expired in February 2007
8 Houses
0 Townhouses
0 Condos

7 Expired in February 2006
7 Houses
0 Townhouses
0 Condos

7 Expired in February 2005
5 Houses
2 Townhouses
0 Condos

7 Expired in February 2004
6 Houses
1 Townhouses
0 Condos

2 Expired in February 2003
2 Houses
0 Townhouses
0 Condos

9 Expired in February 2002
8 Houses
1 Townhouses
0 Condos

6 Expired in February 2001
6 Houses
0 Townhouses
0 Condos

8 Expired in February 2000
8 Houses
0 Townhouses
0 Condos

Los Angeles Real Estate http://www.LAHomeSearch.com

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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