Market Conditions, August 2007

August 4, 2007 at 3:49 pm Leave a comment

I’ll preface this post by saying that one should be wary when one hears a report on the real estate market. Why? Because there is no such thing as the market. Every market is defined by geography, price range, and type of property. The market for low-end re-sale condos in Santa Monica will very likely bear little resemblance to the market for new construction single-family homes in Santa Clarita. Yet the newspapers, TV & radio, and many other sources give commentary on “the market” as if it were one unified, undifferentiated whole.

That said, I just finished up dating my website ( on sales in Santa Monica for the first half of the year. A few quick comparisons between the first half of 2007 and the last half of 2006:

First, contrary to popular notions of declining sales, the total number of sales is roughly the same for both single-family homes and condos. Second, while there are some individual sales that are lower than the preceding lows, and while the top sales prices for condos has retreated a bit, the average sale price for both single-family homes and condos continues to edge up.

If the Santa Monica market is not the runaway Sellers market that it was two years ago, then neither does it mean jubilation for Buyers looking for bargains.

With this description of the general market picture in Santa Monica, then it should not come as a shock to learn that I’m currently representing a Buyer who is in multiple offers competing more than $60,000 over asking price with four other offers. I think my client is going to get the property, we’re just waiting for the signed acceptance on Monday.

The moral of this market report, both the general and the specific, is that a good property, well-priced and well-advertised, will still attract Buyers and will still sell quickly.


Entry filed under: Market Conditions.

Location versus Price and Value in Santa Monica Foreclosures, Santa Monica and more broadly

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