LA Westside BlogPOINT

The Standard & Poor's/Case-Shiller Index of the top 20 housing markets report for July has just been released.   Home prices have increased .9% on the composite for the fourth consecutive month but are still below last year's levels.  The increase more than likely reflects a seasonal bump during the summer when home buying activity is at its peak.  Los Angeles registered a .2% gain as a whole and it's probable that increase would be larger on the LA Westside.  Economists believe those gains may return to declines in the upcoming months if the job market doesn't improve.

This report will provide a quick overview as to how the Westside micro-markets are currently performing and then compares that data to the same period a year ago.  The key market indicators are:

Pending Sales Activity - sometimes referred to as the 'Number of Properties Under Contract'.  This is a forward-looking indicator of current sales activity where there has been an accepted offer and escrow has opened.

Median Sales Price - that point at which half of the properties have sold for a greater amount and half have sold for a lesser amount.  This indicator pinpoints where in the price spectrum homes have sold rather than reflecting home value.  There is a common mis-perception that a drop in the MSP directly indicates a drop in home value.  It is far more likely that the drop indicates either smaller, older and/or homes in lower-priced areas have sold during the period.

Months Supply of Inventory (MSI) - a leading indicator of market supply, which directly impacts pricing.  Generally, a five to six month supply indicates market equilibrium while anything less signals a 'seller's market' and anything above a 'buyer's market'.  

   Information not guaranteed.  © 2009 Terradatum and its suppliers and licensors (http://www.terradatum.com/metrics/licensors)

To view a portfolio of four additional reports trended over the past 12 months:  Properties For Sale, Days On Market, New Properties For Sale and Supply & Demand, visit the Market Sales Data section.  If you have any questions or would like to discuss this data at greater length, just drop me a note or call.

On Monday (9/5) afternoon, a fire in Mandeville Canyon (situated in the Brentwood Hills north of Sunset Blvd.) which has now been labeled The Mandeville Fire broke out around 4:25PM.  The cause of the blaze which spread quickly through the dense brush is still under investigation. 

As of this morning, the fire had burned nearly 10 acres and was about half-contained.  Fortunately, no houses thus far had been damaged although the fire apparently came very close to a home at 3682 Mandeville which is a little over a mile south of Mulholland Drive.  (Mandeville dead-ends just before Mulholland and at roughly 5.2 miles, is considered the longest cul-de-sac in Los Angeles.)

Many buyers I meet here in the LA Westside hold the opinion that home prices may continue to soften over the next year based on what they see and hear in the media.  In a recent interview with The Times, Wayne Yamano, director of research at John Burns Real Estate Consulting in Irvine maintains that buyers shouldn't focus so much on home prices as they should on affordability. 

As buyers plan their home buying strategies, how affordable that monthly payment is may prove to be a far more important metric.  Right now, affordability is "absolutely fantastic and highly unlikely to get much better" according to Yamano.  Otherwise put, buyers should place affordability over home pricing.

The perceived benefit from waiting for prices to fall can easily be overshadowed by the price increase of a mortgage.  Mortgage rates have only one way to go and that's upward.  Even a small bump in rates can easily wipe out savings achieved by waiting for that price reduction. 

"The impact of mortgage rates (on monthly housing costs) is tremendous," he maintains and I couldn't agree more with him.  To illustrate, say prices remain constant and rates rise a full percentage point from 4.5% to 5.5%.   A $600,000 home with a $480,000 mortgage (assuming a 20% down) would cost you 12% more (about $293) each month to own.  Even worse, a 2% increase to 6.5% would bump your mortgage upwards nearly 25%!

The conventional wisdom for buyers is to put less emphasis on the home's market price and more on the monthly payment.  Home affordability is at an all-time high and waiting for wholesale market price declines can rob you of opportunity.  Great deals (defined as buying a great home for a good price that comfortably fits into your budget) are made through effective negotiation - not waiting to read about one. 

Effective this month, all cell phone numbers go public which means that we're all vulnerable to telemarketer calls and worse yet, we'll be charged for the calls!  To insulate yourself from these costly annoyances, I suggest you call the NATIONAL DO NOT CALL REGISTRY at 888-382-1222 from your cell phone. 

It only takes a minute and the registration as I understand it blocks your number for about five years.  You must call from the cell phone number you want to have blocked.  For further information, visit:  The Do Not Call Registry. 

This report will provide a quick overview as to how the Westside micro-markets are currently performing and then compares that data to the same period a year ago.  The key market indicators are:

Pending Sales Activity - sometimes referred to as the 'Number of Properties Under Contract'.  This is a forward-looking indicator of current sales activity where there has been an accepted offer and escrow has opened.

Median Sales Price - that point at which half of the properties have sold for a greater amount and half have sold for a lesser amount.  This indicator pinpoints where in the price spectrum homes have sold rather than reflecting home value.  There is a common mis-perception that a drop in the MSP directly indicates a drop in home value.  It is far more likely that the drop indicates either smaller, older and/or homes in lower-priced areas have sold during the period.

Months Supply of Inventory (MSI) - a leading indicator of market supply, which directly impacts pricing.  Generally, a five to six month supply indicates market equilibrium while anything less signals a 'seller's market' and anything above a 'buyer's market'.  

   Information not guaranteed.  © 2009 Terradatum and its suppliers and licensors (http://www.terradatum.com/metrics/licensors)

To view a portfolio of four additional reports trended over the past 12 months:  Properties For Sale, Days On Market, New Properties For Sale and Supply & Demand, visit the Market Sales Data section.  If you have any questions or would like to discuss this data at greater length, just drop me a note or call.

The 405 Freeway underpass at Santa Monica Blvd. closes  between 9PM and 6AM for three nights starting tonight.  Apparently, the north and soutbound on-ramps to the freeway will also be closed.  The work is part of Metro's I-405 widening project and the targeted section spans between Beloit Ave. on the West and Cotner Ave. on the East.

This report will provide a quick overview as to how the Westside micro-markets are currently performing and then compares that data to the same period a year ago.  The key market indicators are:

Pending Sales Activity - sometimes referred to as the 'Number of Properties Under Contract'.  This is a forward-looking indicator of current sales activity where there has been an accepted offer and escrow has opened.

Median Sales Price - that point at which half of the properties have sold for a greater amount and half have sold for a lesser amount.  This indicator pinpoints where in the price spectrum homes have sold rather than reflecting home value.  There is a common mis-perception that a drop in the MSP directly indicates a drop in home value.  It is far more likely that the drop indicates either smaller, older and/or homes in lower-priced areas have sold during the period.

Months Supply of Inventory (MSI) - a leading indicator of market supply, which directly impacts pricing.  Generally, a five to six month supply indicates market equilibrium while anything less signals a 'seller's market' and anything above a 'buyer's market'.  

   Information not guaranteed.  © 2009 Terradatum and its suppliers and licensors (http://www.terradatum.com/metrics/licensors)

To view a portfolio of four additional reports trended over the past 12 months:  Properties For Sale, Days On Market, New Properties For Sale and Supply & Demand, visit the Market Sales Data section.  If you have any questions or would like to discuss this data at greater length, just drop me a note or call.

Absolutely stunning 2BD/2.5BA Condo in The Westholme, located on the presitigious Wilshire Corridor.  Located above the 10th floor, this corner unit features terrific views and has been extensively remodeled.

From its marble entry to huge living room with fireplace to the designer kitchen, this condo is nearly 2200 square feet and feels like home the minute you step inside.  It's also complimented with two side-by-side parking spaces, a private storage room and 3 storage lockers.

The Westholme is a full-service building with 24-hour security, valet parking (self parking OK), doorman, concierge, fitness center, spa, sauna, swimming pool and is just minutes to UCLA, Bevery Hills and shopping in Century City.  The seller prefers a quiet sale and is asking $899,000 or if preferred, it may be leased fully furnished at $6900 per month. 

This home is easy to show and appointments accepted with just 24 hrs advance notice. 

This report will provide a quick overview as to how the Westside micro-markets are currently performing and then compares that data to the same period a year ago.  The key market indicators are:

Pending Sales Activity - sometimes referred to as the 'Number of Properties Under Contract'.  This is a forward-looking indicator of current sales activity where there has been an accepted offer and escrow has opened.

Median Sales Price - that point at which half of the properties have sold for a greater amount and half have sold for a lesser amount.  This indicator pinpoints where in the price spectrum homes have sold rather than reflecting home value.  There is a common mis-perception that a drop in the MSP directly indicates a drop in home value.  It is far more likely that the drop indicates either smaller, older and/or homes in lower-priced areas have sold during the period.

Months Supply of Inventory (MSI) - a leading indicator of market supply, which directly impacts pricing.  Generally, a five to six month supply indicates market equilibrium while anything less signals a 'seller's market' and anything above a 'buyer's market'.  

   Information not guaranteed.  © 2009 Terradatum and its suppliers and licensors (http://www.terradatum.com/metrics/licensors)

To view a portfolio of four additional reports trended over the past 12 months:  Properties For Sale, Days On Market, New Properties For Sale and Supply & Demand, visit the Market Sales Data section.  If you have any questions or would like to discuss this data at greater length, just drop me a note or call.