Listing prices now down $120K from peak
Median listing prices in greater L.A. fell another $4,900 over the past week and have now fallen a stunning $119,666 -- or 21% -- from their peak in April 2006, according to Housing Tracker's analysis of MLS listings.
Highlights:
--Median listing prices fell to $460,000, a decline of 2.1% in the last month and 16.2% in the last year.
--The inventory of unsold houses and condos declined to 41,934, which is 27.2% ahead of last year's levels.
Date Median listing price Inventory
4/06 $579,666 27,251
4/07 $545,000 35,489
5/07 $545,000 38,297
6/07 $540,000 40,766 (up 20.4% y/y)
7/07 $535,000 42,685 (up 14.5% y/y)
8/07 $529,000 44,483 (up 13.6% y/y)
9/07 $520,000 46,414 (up 16.9% y/y)
10/07 $510,000 46,603 (up 15.6% y/y)
11/07 $499,900 46,503 (up 19.0% y/y)
12/07 $495,000 (down 10.0% y/y) 43,174 (up 28.2% y/y)
1/08 $479,900 (down 12.6%) 40,850 (up 33.3% y/y)
2/08 $475,000 (down 13.5%) 43,625 (Up 38.3%)
3/10/08 $465,500 (down 15.4%) 41,838 (Up 32.3%)
3/17/08 $464,900 (down 15.5%) 42,098 (Up 31.4%)
3/24/08 $460,000 (down 16.2%) 41,934 (Up 27.2%)
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: L.A. Times
finally someone making sense...
http://www.latimes.com/news/opinion/la-op-
leonard-thornberg24mar24,0,3653152.story
Posted by: jb | March 24, 2008 at 09:20 PM
I'm no finance or real estate expert as many here claim to be. I don't profess to know the technical aspects of the real estate market. I'm an avg Jane trying to afford her first home and come to this blog to absorb other perspectives on the market and hopefully learn something from the links to articles and websites people post.
That being said, everytime I see these "Listing Prices Down X% Over Peak" I have the same thought and expect the same comments... Until Joe Schmoe earning an avg salary can afford a home, it doesn't matter how far from peak the prices are.
If the banks continue with the tighter lending standards (closing the barn door after the horse has run out), no one will be able to afford these homes and sales will continue to be sluggish. This should help those of us who are priced out. Hopefully the banks will continue (or shall we say start) to be vigilant about who they make home loans to.
And while I don't believe Joe Schmoe is entitled to live in Malibu for the avg salary, I do believe he should be able to afford a home in a safe area. When homes in a safe area can be had for $300K, which is approx. 3Xs the avg household salary, I think the time to buy will have been reached. Hopefully the government will stop interfering and allow this to happen.
Posted by: JK | March 24, 2008 at 10:52 PM
I think the real untold story here is that prices are still declining in March. If you look at the historical data, prices normally rise after December until the end of June. This year has instead seen a 4-5% price decline when prices normally rise by that amount.
As mentioned, prices peak in June an start their slight decent in July til December. That means we have at best, 3 more months to show some sort of price stability or modest increase before prices start to fall again.
I figure we have another $80k or so to fall so at least we've passed the half way point!
Posted by: Bill | March 25, 2008 at 01:22 AM
hey guys i'm not sure you want to live in a 'median' area lol! if you find a beauty for $460K let us know ok? what could be better than a buyers' market in incredible metro L.A.!! wow yahoo weather says it 'feels like 24 degrees' in NYC with rain coming! :)
Posted by: lefty | March 25, 2008 at 03:08 AM
Let's see some numbers indicating how many homes are actually selling and the median sale price.
Posted by: John T. Watts | March 25, 2008 at 05:13 AM
Alright, time to buy. 25% down on $460K to qualify for a bank loan, you say. Thats $115. WTF, I don't got that much money lying around.
This housing slums going to continue...
Posted by: ray | March 25, 2008 at 07:59 AM
check out case shiller index for LA. Basically the price in January 2008 rolled back (aka Walmart) to February 2005. Keep in mind Case shiller is behind, lagging, and thus report only January prices. Using "bare eye" observation prices have declined at least about 1% per month (more likley 2% per month). So you can safely see that the price in March 2008 is realistically 2004 price level.
I plotted the info for LA, and posted on my blog page. It looks interesting. Pay attention to the "needle peak" and compare it to the last housing boom of 1988-1991. The price drops are much steeper, so bottom out should occur in 2009-2010 and not 2012-2013...
Posted by: Laker | March 25, 2008 at 09:22 AM
Median asking price is down.
Yawn.
So there are more desperate sellers in Watts than other areas.
Get back to me when the rest of L.A. gets a clue.
Posted by: E | March 25, 2008 at 10:36 AM
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Lower!!!
Lower!!!
Lower!!!!
Posted by: Enlightenment | March 25, 2008 at 10:02 PM