The market is still looking to find its footing and gain traction. Consistent with the previous months of this year the Micro Markets that we are following are all experiencing different types of activity.

April’s closed sales volume is the aftermath of the slow flow of new transactions from February and March. Escrows are averaging 30 to 60 days to close.

Open House Activity is very strong as the mood and confidence of buyers improve. Positive media outlooks, including upbeat forecasts from Warren Buffet and The Wall Street Journal, about the improving sub prime markets and the housing markets are a refreshing respite from all of the negative news articles that have been published over the past many months.

Sellers are beginning to enter the market at market value and/or are reducing listing prices until market value is found.

Financing is still tough and is still the major obstacle for buyers and sellers to close a transaction. Many lenders are acting gun shy by pricing themselves out of the market or seeking appraisals below the contracted price between a buyer and seller. Local lenders, however, are taking advantage of the opportunity by providing portfolio loans to qualified borrowers, but demand is outstripping supply and the queue for approval is long.

First time buyers are back in the market. This is good news for the middle of the market as this will give those sellers the opportunity to move up to a new home. The top of the market is still very strong and oblivious to the economy or financial markets. If these buyers want a property, they buy it. We think they know something about real estate as an investment.

Improved values are driving multiple offers on existing inventories and we have participated or managed transactions with as many as 13 offers.

Inventory is still low in many markets. Sellers are waiting for the market to stabilize before placing their property on the market.

Now for some specific observations:
The sales volume in 10 out 20 markets we track had a better April than March in 2008. Santa Monica’s April sales volume doubled its March volume.

However, only 4 out of 20 markets had improved sales volume for April ‘08 compared to April ‘07.

Beverly Hills, Beverly Hills Post Office and Brentwood, which were our best performing markets for the year, took the brunt of the lower sales volume in April.
Bel Air bucked the trend and had a stronger April compared to the previous year.

Cheviot Hills / Rancho Park continues in its steady sales volume and Venice made a strong comeback by tripling sales volume compared to March ‘08 and nearly matching April ‘07.

Hancock Park continues to perform well, matching previous sales history. As traffic congestion tightens on the Westside, the Hancock Park market improves.

Median Prices improved for 13 out of 20 markets in April over March for ‘08. Only 6 markets improved for April ‘08 compared to April ‘07.

Sunset Strip improved to a median price of $1,740,000 for the month of April compared to $1,539,00 for April ‘07 and $1,475,000 for March ‘08.

Cheviot Hills / Rancho Park enjoyed a median price of $1,645,000 compared to $1,600,000 for the same month the previous year and $1,417,000 for the month of March this year.

Venice surged to $1,200,000 from $969,000.

Hollywood Hills East fared very well at $1,169,000 compared to $1,080,000 for the same month the previous year and $765,000 for March of this year.

Please use the link below to obtain the information you need for your particular market.

APRIL 2008 Micro Market Report

Filed under: Industry and Economic News, Micro Market Updates, Teles News and Press Releases on May 21st, 2008