Los Angeles Real Estate Blog

The San Pedro Real Estate Market Authority

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

During the Spring 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 224 homes for sale in San Pedro and 20 sold. Translation, under current market conditions, in any given month, you have about a 1 in 11 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 212 active listings for sale in the San Pedro Market (Area 179-193): 129 Houses; 25 Townhouses; and 70 Condominiums.

In the past year, there were 407 homes sold in San Pedro (between 3.01.07 and 2.29.08): 234 Houses; 73 Townhouses; and 100 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 1.8 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 198 days, Townhouses will be on the market an average of 123 days, and Condominiums should be on the market an average of 252 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 11.2 month inventory of homes for sale in San Pedro.

Broken down by specific property type, we find that there is a 8.1 month inventory of Houses, a 12.5 month inventory of Townhouses, and a 35 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
20 sold in February 2008
45 sold in February 2007

224 Current Active Listings
129 Houses
25 Townhouses

70 Condos

20 Sold in February 2008
16 Houses
2 Townhouses
2 Condos

18 Expired in February 2008
11 Houses
2 Townhouses
5 Condos

41 Contingent & Pending in February 2008
24 Houses
5 Townhouses
12 Condos

20 Sold in February 2007
16 Houses
2 Townhouses
2 Condos

38 Sold in February 2006
23 Houses
7 Townhouses
8 Condos
45 Sold in February 2005
28 Houses
6 Townhouses
11 Condos
53 Sold in February 2004
18 Houses
13 Townhouses
22 Condos
46 Sold in February 2003
27 Houses
9 Townhouses
10 Condos
63 Sold in February 2002
32 Houses
18 Townhouses
13 Condos
53 Sold in February 2001
25 Houses
10 Townhouses
8 Condos
46 Sold in February 2000
28 Houses
6 Townhouses
12 Condos

7 Expired in February 2007
5 Houses
0 Townhouses
2 Condos

13 Expired in February 2006
7 Houses
1 Townhouses
5 Condos

7 Expired in February 2005
4 Houses
1 Townhouses
2 Condos

9 Expired in February 2004
6 Houses
1 Townhouses
2 Condos

7 Expired in February 2003
5 Houses
0 Townhouses
2 Condos

6 Expired in February 2002
3 Houses
1 Townhouses
2 Condos

10 Expired in February 2001
4 Houses
3 Townhouses
3 Condos

10 Expired in February 2000
6 Houses
2 Townhouses
2 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