A new year has begun and it’s time for a review of the real estate market in Santa Monica as it performed at the end of 2010 and in January of this year.
Inventory is way down. The market is setting itself up for a busy year with interest rates still low, and prices are stable because of such little selection. Buyers all flock to each of the few new listings and the well priced homes and condos sell within a few days.
Here are the figures for the market in Santa Monica:
- Actives: 17. Down 32%
- Pending sales: 10. down 23 %
- Solds: 23. Down 54%
- Days on Market: 69. Down 9%
- $/ft: 781. Down 9%
- Lp/sp ratio is 96%
This reporting period included the slowest time of the year – Thanksgiving, Christmas and new year holidays. However, the bottom line is that stable conditions will likely lead toward more sales as sellers come to realize that there are ready, willing and able buyers looking for real estate again.
A good example of the value of proper pricing is a new sale at 616 25th Street; this is a land value property North of Montana Avenue.
It was listed during the most famous “slow” period in real estate – December 30, 2010. It was listed for what was probably thought to be slightly under the actual value at $1,875,000. Buyers and agents were given 10 days to view the property and submit their offers. It sold with multiple offers and is scheduled to close soon. In another sale North of Wilshire, the property came on the market December 14, 2010 at the strategically or artificially low price of $989,000. The property sold with more than 20 offers and closed at over 30% higher than the list price.
In summary, the market is setting itself up for a busy Spring selling season. If sellers price their properties properly and hire an experienced professional to help, they will sell quickly.
How have you seen the real estate market perform in your neighborhood? Are you looking to buy or sell a home and do you have questions about the market? Please leave your comments below or feel free to contact me directly.