Los Angeles Real Estate Blog

The South Bay CA Real Estate Market Authority

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

During the Spring season, South Bay 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 2341 homes for sale in South Bay and 255 sold. Translation, under current market conditions, in any given month, you have about a 1 in 9 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 April 1, 2008, there were 2341 active listings for sale in the South Bay Market (Areas 107-193): 1498 Houses; 506 Townhouses; and 337 Condominiums.

In the past year, there were 2135 homes sold in South Bay (between 4.01.07 and 3.31.08): 1438 Houses; 429 Townhouses; and 268 Condominiums.
What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 0.9 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 375 days, Townhouses will be on the market an average of 425 days, and Condominiums should be on the market an average of 452 days.

Market Recap for the Month of March, 2008

When one compares the February results with the yearly result, we find that there is an approximately 9.2 month inventory of homes for sale in South Bay.

Broken down by specific property type, we find that there is a 8.7 month inventory of Houses, a 9.0 month inventory of Townhouses, and a 12.5 month inventory of Condominiums on the market in South Bay. (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 South Bay 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.

Sell Your Home In 120 Days or We’ll Sell It For Free
Buy a Home With NO Money Down
FREE Seller Reports Sell Your Home Fast And For Top Dollar
FREE Buyer Reports – Get The Most Home For Your Money
FREE Over The Net Home Evaluation
Find Out What The House Down The Street Sold For
Virtual Tours
And much more

South Bay Home Sales by the Numbers
255 sold in February 2008
595 sold in February 2007

2341 Current Active Listings
1498 Houses
506 Townhouses
337 Condos

255 Sold in February 2008
172 Houses
56 Townhouses
27 Condos

481 Contingent & Pending in February 2008
331 Houses
104 Townhouses
46 Condos

260 Expired in February 2008
166 Houses
57 Townhouses
37 Condos

595 Sold in February 2007
356 Houses
169 Townhouses
70 Condos

594 Sold in February 2006
362 Houses
145 Townhouses
87 Condos

656 Sold in February 2005
408 Houses
163 Townhouses
85 Condos

675 Sold in February 2004
444 Houses
151 Townhouses
80 Condos

734 Sold in February 2003
436 Houses
189 Townhouses
109 Condos

768 Sold in February 2002
501 Houses
178 Townhouses
89 Condos

680 Sold in February 2001
429 Houses
159 Townhouses
92 Condos

719 Sold in February 2000
486 Houses
162 Townhouses
71 Condos

119 Expired in February 2007
79 Houses
24 Townhouses
16 Condos

133 Expired in February 2006
90 Houses
27 Townhouses
16 Condos

36 Expired in February 2005
27 Houses
5 Townhouses
4 Condos

50 Expired in February 2004
39 Houses
7 Townhouses
4 Condos

82 Expired in February 2003
60 Houses
11 Townhouses
11 Condos

86 Expired in February 2002
64 Houses
10 Townhouses
12 Condos

91 Expired in February 2001
68 Houses
12 Townhouses
11 Condos

104 Expired in February 2000
76 Houses
23 Townhouses
5 Condos

To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, santa Monica, and Malibu go to http://www.LAHomeSearch.com

To search for "For Sale By Owner" properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com

Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com

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