Real Estate Market Report

Northeast Los Angeles     September, 2009

Atwater Village, Eagle Rock, Glassell Park, Highland Park, and Mount Washington

Market Index - 0.75 – up 10 points.

A market index of above 1.20 is a seller’s market, between 0.80 to 1.20 is a balanced market, and below 0.80 is a buyer’s market.

The Market Index went up to 0.75, versus 0.65 last month.  Last year is was 0.19.

New Listings – 46 properties hit the market, up from 57 last month, versus 94 last year.

Pending Listings – 52 listings opened escrow, even with last month, up from 22 in September of 2008.

Pending Ratio – 1.13, up from 0.83, last month, versus 0.23 last year. 

Listing Inventory – 140 listings on the market, down from 161 last month, last year was 229. Inventory continues to decline.  

Units Sold – 53 properties sold, down from last month’s 62.  Last year 22 homes sold.

Absorption rate – 2.6 months, last month was 2.6 and last year it was 8.3 months.  Note: A six-month supply is considered a balanced market.

Price Per Square Foot - $319.63, up from last month’s $295.50, (the average size home sold decreased, which is part of the reason) and down 5.1% from last year. 

Conclusions

The Market Index increase reflects the continuing decline in the Absorption Rate with two and a half month’s of inventory available.  The Average Sale Price increased slightly, but the average size of home sold declined, so the Average Sale Price Per Square Foot increased (larger homes normally sell at a lower price per square foot).

For buyers –Slim pickings means multiple offers on properties that are priced right, and low-ball offers are not likely to see a response.

For sellers – The lack of quality inventory is in your favor.   Maximize your profit by taking advantage of our  Highest Price Analysis and learn how to make the most when you sell.

Keith Sorem Realtor
DRE#01374635