From the desk of Greg M. Ingerson, Attorney At Law
During the Fall season, County Strip home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.
Last month, the MLS summary showed that there were 37 homes for sale in County Strip and 11 sold. Translation, under current market conditions, in any given month, you have about a 1 in 3 chance of selling your home.
In other words, when pricing your home, the practice of adding a “Pad” or “Cushion” to make room for negotiating is not advisable in this market.
As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.
Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.
Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.
Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.
Home Sellers in this market should realize that buyers in today’s market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.
So what can we expect? Demand should decrease a little over the coming weeks.
The Numbers Don’t Lie, Here Is What’s Happening:
On October 1, 2009, there were 37 active listings for sale in the County Strip Market: 11 Houses; 4 Townhouses; and 22 Condominiums.
In the past year, there were 126 homes sold in County Strip (between 11.01.08 and 10.30.09): 64 Houses; 18 Townhouses; and 44 Condominiums.
What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 3.4 times per year.
Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 62 days, Townhouses will be on the market an average of 80 days, and Condominiums should be on the market an average of 180 days.
Market Recap for the Month of September, 2009
When one compares the September results with the yearly result, we find that there is an approximately 3.4 month inventory of homes for sale in County Strip.
Broken down by specific property type, we find that there is a 2.8 month inventory of Houses, a 2 month inventory of Townhouses, and a 4.4 month inventory of Condominiums on the market in County Strip. (Based on current absorption rates).
How should a Seller approach the market? The key in today’s market is proper pricing. If you are thinking of selling, now September be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.
How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low.
For more information regarding the South Bay and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 24 Hours a Day.
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County Strip Home Sales by the Numbers
11 sold in September 2009
16 sold in September 2008
37 Current Active Listings
11 Houses
4 Townhouses
22 Condos
11 Sold in September 2009
4 Houses
2 Townhouses
5 Condos
22 Contingent & Pending in September 2009
8 Houses
3 Townhouses
11 Condos
0 Expired in September 2009
0 Houses
0 Townhouses
0 Condos
16 Sold in September 2008
6 Houses
4 Townhouses
6 Condos
18 Sold in September 2007
8 Houses
0 Townhouses
10 Condos
15 Sold in September 2006
7 Houses
1 Townhouses
7 Condos
23 Sold in September 2005
7 Houses
7 Townhouses
9 Condos
24 Sold in September 2004
13 Houses
1 Townhouses
10 Condos
32 Sold in September 2003
13 Houses
9 Townhouses
11 Condos
24 Sold in September 2002
8 Houses
8 Townhouses
8 Condos
27 Sold in September 2001
7 Houses
9 Townhouses
11 Condos
20 Sold in September 2000
5 Houses
6 Townhouses
9 Condos
8 Expired in September 2008
3 Houses
3 Townhouses
2 Condos
6 Expired in September 2007
5 Houses
0 Townhouses
1 Condos
6 Expired in September 2006
1 Houses
2 Townhouses
3 Condos
5 Expired in September 2005
3 Houses
0 Townhouses
2 Condos
1 Expired in September 2004
0 Houses
1 Townhouses
0 Condos
3 Expired in September 2003
2 Houses
0 Townhouses
1 Condos
1 Expired in September 2002
1 Houses
0 Townhouses
0 Condos
5 Expired in September 2001
4 Houses
0 Townhouses
1 Condos
5 Expired in September 2000
3 Houses
0 Townhouses
2 Condos
To search for bank owned properties on the market go to http://www.LAHomeSearch.com
To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, Santa Monica, and Malibu go to http://www.LAHomeSearch.com
For Los Angeles Real Estate go to http://www.LAHomeSearch.com
To search for “For Sale By Owner” properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com
Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com
About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com