Despite the cold weather lately, the housing market here in Santa Monica is still hot hot hot, especially for sellers. Want proof? Let’s take a look at the current Market Action Index (MAI). The MAI gives us a number for the balance between supply and demand using the current rate of sale versus the current inventory. Santa Monica’s current MAI is hovering around 48. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly absorb any available supply. This is an increase over last month’s market action index of 42, so we’re continuing to climb! The number of new homes coming on the market each month in 90402 increased by 7.14%, while the number of homes sold each month increased by 183.33% over the past 12 months. Talk about a warm front in a normally cold season.
The market continues to get hotter as inventory has decreased to only 17 listings! Higher demand and fewer homes listed have contributed to a relatively long run of increasing prices. Current supply and demand levels show no sign of prices changing from their current trend.
On average this year, homes in Santa Monica sell after 45 days on the market compared to 49 days last year. Keep in mind the different current major market segments. For example, a home in the 20 million dollar range is going to have to wait a little longer to find a buyer as opposed to the 3 million dollar range that could be put on the market and sold in as little as a few weeks.
This week the median list price for Santa Monica, CA 90402 is $6,895,000 as compared to just a little over 5 million last week. To put it in perspective, that means that it’s about $2,000 per square foot for the average listing, but these are asking prices, not the final SALE price.
Do sellers have the advantage now? YES! It’s the right time to sell a house in Santa Monica. With low inventory and the average days on the market are on a downward trajectory, it’s a good time to sell. For prospective buyers – you want to own assets not sit on cash when inflation is looming, right?
In 90402 real estate news…
We are officially in full holiday mode (meaning new listings will be few and far between until 2022)!
There are only 11 active listings right now! I am not sure I have ever seen less inventory NOM!
Two new listing since my last update.
233 Marguerita Avenue– Just listed by Pence Hathorn Silver for $12,995,000. This 6,000 sqft house sits on an impressive lot. Over 22,000 sqft with beautiful pool, spa, BBQ, play-area, 4-car garage converted to clubhouse with 1 bedroom, 1 bath guest house above.
717 9th Street– Also just listed by Pence Hathorn Silver for $2,995,000. Very unique 4-unit income property North of Montana! 3 of the 4 units are fully furnished and fetch market rent and all have private front yards. I expect this income opportunity to fly off the market!
There are two new escrows (16 properties are under contract in total)
616 24th Street – Listed for $6,895,000
333 12th Street– Listed for $5,589,000
332 12th Street – Sold by my partner Charles Pence for $7,320,000. Originally listed for $7,549,000
410 Lincoln Blvd – Sold for $7,500,000. Originally listed for $7,489,000