The Santa Monica Market: 2008 vs. 2007

January 22, 2009 at 6:06 pm Leave a comment

Market Report—January, 2009

It has long been my contention that prices in Santa Monica go up more in an “up” market, down less in a “down” market. The pattern of prices over the last two years would seem to validate that conclusion.

As of January 8, there were 150 condos and 98 single-family homes on the market in Santa Monica.

Median Asking Prices
Single family homes

# bedrooms # on market Median Asking Price
2 BR 23 $1,099,000
3 BR 28 $1,199,000
4 BR 21 $2,375,000
5+ BR 24 $3,922,000

Condos:

# bedrooms # on market Median Asking Price
Studio 5 $399,000
1 BR 32 $458,000
2 BR 85 $764,900
3+ BR 33 $1,349,000

Some interesting numbers are the year to year comparisons for 2007 vs. 2008, both of numbers of units sold and median selling prices.

Single Family homes

Area # sold 2007 Median Selling Price # sold 2008 Median Selling Price
Santa Monica 280 $1,681,750 192 $1,900,000
Brentwood 223 $2,075,000 154 $2,100,000
Westwood 179 $1,351,000 146 $1,338,000
West LA 78 $762,000 45 $745,000
Mar Vista/Palms 310 $861,250 238 $770,000
Culver City 145 $779,000 129 $695,000
Venice 173 $1,170,000 130 $1,150,000

Condo/Townhouse

Area # sold 2007 Median Selling Price # sold 2008 Median Selling Price
Santa Monica 439 $780,000 339 $680,000
Brentwood 250 $714,500 131 $690,000
Westwood 718 $670,000 365 $680,000
West LA 176 $629,500 149 $595,000
Mar Vista/Palms 141 $485,000 107 $419,000
Culver City 202 $440,000 180 $399,500
Venice 38 $925,500 18 $1,112,500

Note that price declines were modest in comparison to what one might expect from reading the newspaper headlines and that for single-family homes prices in Santa Monica and Brentwood actually increased.

Why are prices in the Westside so relatively inelastic in comparison to other areas? In a word, foreclosures. Or, more precisely, the relative lack of them.

Foreclosure sales pattern
Data as of 1/15/09

Single Family homes

Area # sold 2008 # on market now # in escrow now
Santa Monica 0 0 0
Brentwood 4 0 1
Westwood 2 0 1
West LA 2 2 0
Mar Vista/Palms 13 5 0
Culver City 10 2 4
Venice 2 0 2
Bel Air 6 0 1
Topanga 5 2 0

Condo

Area # sold 2008 # on market now # in escrow now
Santa Monica 8 9 6
Brentwood 4 1 2
Westwood 14 4 5
West LA 9 2 1
Mar Vista/Palms 5 0 0
Culver City 15 3 6

More than half of all home sales in December in Southern California were foreclosures and yet very few were in communities on the Westside. One doesn’t have to travel far to find a completely different picture.

Area # sold 2008 # on market now # in escrow now
Sherman Oaks 45 20 8

And this data from Sherman Oaks is incomplete due to overlapping MLS services. The actual foreclosure activity is even higher, I just can’t quickly document it. And as dramatic a contrast is this is from the Westside, areas other than Sherman Oaks are even worse.

Unless the foreclosure pattern changes radically, prices on the Westside in general and Santa Monica in particular will continue to be relatively inelastic compared to prices elsewhere in Southern California.

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Entry filed under: Market Conditions, Santa Monica real estate, Uncategorized.

Update on Market Conditions—October, 2008 2009 versus 2008 Westside Market Report

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