Santa Monica Dirt by John Hathorn May 16th 2012:
Buyers demand is up, supply is down, pent-up demand – fueled by prices that are still off their peaks – and continued low interest rates result in Buyer confidence and a heated start to the 2nd quarter. These conditions and Buyers missing out on one or more properties due to multiple competing offers have created higher prices for some Santa Monica Sellers.
I last reported to you at the beginning of the year with a 2011 summary and year over year comparison, in which 2011 showed signs of a stable market. The number of available listings (too few) has led to a Seller’s market in Santa Monica (in particular 90402).
As expected, after the first few months of 2012, the market has escalated, but what was not as expected is how quickly the market has built momentum. Again we have gains in most major categories for the North of Montana Avenue real estate market, such as improved (fewer) days on market, median sales prices, and overall sales prices. Overall, for single family homes in 90402, we have seen a 10% rise in the number of sales from the first quarter of 2011 and 30% increase compared to 2010.
Positive indicators for Sellers are that Buyers have multiplied in numbers as evidenced by numerous multiple bidding situations, for what is considered a steady but mostly low amount of available inventory for sale.
Further supporting the Seller’s market is the high listing to sales price ratio – currently a very healthy 97%, which is about the same as 2011. In a Seller’s market, this ratio hovers close to 100% and in a declining or Buyer’s market, the ratio can drop below 90%. It is evident that Sellers and real estate agents are pricing properties at prices that are enticing Buyers to compete with other Buyers to purchase the same home. With so few properties available for Buyers to bid on, it is as if Sellers cannot list property too low, since numerous competitive bidding is often likely to raise the ultimate selling prices to levels that may exceed the actual value. This can create problems with appraisals but I will address that issue in a future column.
Not only was there a 42% increase in overall single family home sales this 1st Quarter vs. last year, there were twice as many sales in the $3-4 million range, over twice as many in the $2-3 million range (which had the highest number of sales at 9 total), and almost an equal number of $2 million and below sales.
Overall in Santa Monica, the North of Montana Ave 90402 zip code has remained the power house, enjoying the most activity and highest sales appreciation, including a $10.5 million condo sale on Ocean Ave.
My prediction continues to be modest price appreciation, therefore I am cautiously optimistic about our local real estate market.
Active/ Available New Listings
804 Woodacres Rd.– 5bd + 4.5ba. $6,495,000. New Listing. Nearly an acre of land on this little known cul-de-sac. If you were to take 14th street across San Vicente you would find yourself on Woodacres Rd. There may be some ocean view potential from a second story on this lot.
Not in the MLS yet! 239 21st Place (see photo below). Price TBD. 5 bedrooms, 5.5 baths, apx. 5,692 sq ft home on an apx. 10,290 sq ft corner lot.
New Sales (Now In Escrow/ Sale Pending)
514 9th St.– 5bd + 4.5ba. $3,195,000. Sold in less than a week. A very nice new listing last sold in 2002 for $1,750,000. Mostly nice upgrades but still a bit 1980’s in places. Good value based on the square footage.
317 23rd St.– 3bd + 3ba. $2,849,000. It is no surprise that this courtyard style Spanish hacienda sold so quickly. The garage was sub-par but the house had charm deluxe.
633 Euclid St.– 3bd + 2ba. $2,398,000. Bright and airy home with detached studio/ guest house with bath.
555 26th St.– 4bd + 4ba. $1,950,000. Huge apx. 9,900 sq. ft. lot. Original 1932 Spanish 2 story Trust sale w/circular driveway. Rehab or build new, create your dream house.
525 16th St.– 2bd + 1.5ba. $1,895,000. Picturesque Country English in coveted north of Montana neighborhood. Great Value!
Pence Hathorn Silver Active Properties:
101 17th St. – 6bd + 8.5ba – $6,995,000
145 Ocean Avenue Ext. – 5bd + 5.5ba – $5,549,000
635 20th St. – 4bd + 5.5ba – $4,395,000
509 21st Pl. – 6bd + 5.5ba – $3,995,000
401 18th St. – 4bd + 4.5ba – $3,325,000
307 21st St. – 5bd + 4.75ba – $3,295,000
551 Lincoln Blvd. – 5bd + 4.5ba – $2,998,000
2060 Benedict Canyon Dr – 3bd + 2.5ba – $1,199,000
122 N. Clark Dr. #401 – 2bd + 2.5ba – $969,000
2950 Neilson Way #310 – 2bd + 2ba – $749,500
Search for more homes, see real time analytics and learn about the North Santa Monica / North of Montana Ave community on our North of Montana blog.
Add your comments (scroll down to the “Add Your Comment” section) and read other blogs.
And please call me at (310) 458-4024 with any questions.