There wereÂ 5Â SFR ( single family residence)Â sales in October in theÂ Â West HollywoodÂ area, with the YTDÂ average at $605/sq. ft.- down 17% from the 2006 market peak of $731/sq. ft.Â According to the MLS there are 72 active SFR listings, an average of 4.8 sales /month YTD which gives us an inventory of 15 months supply. REO, or bank-owned property in West HollywoodÂ not listed with a broker is at 74 units, or an additional 15 months supply. As I have noted in previous market reports, a pipeline of 1-2 months supply of unlistedÂ REO propertyÂ is considered normal.
In the West Hollywood Condo Market, there were 27 sales in October, with the YTD average at $445/sq. ft.- down 21% from the 2006 market peak of $523/sq.ft. There are 299 active condo listings, an average of 24 sales/month YTD whichÂ gives us an inventory of 12 months. REO numbers for Weho condos are at 37 units, or about 1.5 months supply.
The numbers pretty much speak for themselves, as inventory numbers threaten to expand considerably in the SFR market, the condo market inventory has come down since the beginningÂ of the selling season. In order to get back to a more â€œnormal â€œsupply of 6-7 months, especially with Option ARM/Interest-Only resets coming for the next 2 years,Â it seems inevitable that prices, especiallyÂ in the single family market here in West Hollywood are going to have to come down.