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 227 homes for sale in San Pedro and 24 sold. Translation, under current market conditions, in any given month, you have about a 1 in 10 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 227 active listings for sale in the San Pedro Market (Area 179-193): 137 Houses; 24 Townhouses; and 66 Condominiums.

In the past year, there were 382 homes sold in San Pedro (between 4.01.07 and 3.31.08): 222 Houses; 68 Townhouses; and 92 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 1.7 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 222 days, Townhouses will be on the market an average of 127 days, and Condominiums should be on the market an average of 258 days.

Market Recap for the Month of March 2008
When one compares the March results with the yearly result, we find that there is an approximately 9.5 month inventory of homes for sale in San Pedro.

Broken down by specific property type, we find that there is a 10.5 month inventory of Houses, a 6 month inventory of Townhouses, and a 9.4 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
24 sold in March 2008
61 sold in March 2007

227 Current Active Listings
137 Houses
24 Townhouses
66 Condos

24 Sold in March 2008
13 Houses
4 Townhouses
7 Condos

22 Expired in March 2008
10 Houses
1 Townhouses
11 Condos

48 Contingent & Pending in March 2008
31 Houses
9 Townhouses
8 Condos

61 Sold in March 2007
33 Houses
10 Townhouses
18 Condos

60 Sold in March 2006
38 Houses
15 Townhouses
7 Condos

72 Sold in March 2005
45 Houses
13 Townhouses
14 Condos

71 Sold in March 2004
45 Houses
13 Townhouses
13 Condos

85 Sold in March 2003
49 Houses
8 Townhouses
28 Condos

87 Sold in March 2002
44 Houses
22 Townhouses
21 Condos

84 Sold in March 2001
42 Houses
17 Townhouses
25 Condos

72 Sold in March 2000
47 Houses
13 Townhouses
12 Condos

20 Expired in March 2007
13 Houses
1 Townhouses
6 Condos

16 Expired in March 2006
9 Houses
2 Townhouses
5 Condos

2 Expired in March 2005
2 Houses
0 Townhouses
0 Condos

12 Expired in March 2004
9 Houses
1 Townhouses
2 Condos

12 Expired in March 2003
7 Houses
0 Townhouses
5 Condos

13 Expired in March 2002
9 Houses
0 Townhouses
4 Condos

10 Expired in March 2001
6 Houses
1 Townhouses
3 Condos

8 Expired in March 2000
4 Houses
4 Townhouses
0 Condos

To search for bank owned properties on the market go to http://www.LAHomeSearch.com

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

For Los Angeles Real Estate 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