Inventory sinks as listing prices dip by $900

Median listing prices in L.A. County slipped $900 over the past week, and inventory of for-sale homes and condos dipped, according to Housing Tracker's analysis of MLS listings.

Prices fell to $399,000, a decline of 23.1% from year-ago levels, but down only $1,000 over the past three weeks, a lull in what had been a steady march downward for listing prices.

Inventory dipped more dramatically, dropping nearly 2,000 units, and is now running 12.3% below year-ago 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%)
3/08               $464,900 (down 15.5%)                42,098 (up 31.4%)
4/08               $450,000 (down 17.4%)                42,430 (up 16.7%)
5/08               $449,900 (down 17.4%)                42,532 (up 11.1%)
6/08               $440,000 (down 18.5%)                42,398 (up 4.0%)
7/08               $425,000 (down 20.6%)                44,636 (up 4.6%)
8/08              $410,000 (down 22.3%)                 42,279 (down 5.1%) 
9/2/08          $400,000 (down 23.8%)                 42,081 (down 8.6%)
9/8/08           $399,999 (down  23.1%)                41,803 (down 9.9%)
9/15/08         $399,900 (down 23.1%)                 42,553 (down 7.9%)
9/22/08         $399,000 (down 23.1%)                 40,565 (down 12.3%)

-- Peter Viles

Your thoughts? Comments? E-mail story tips to Peter Viles.

Comments

[Chris Pepper]

I'm tracking pasadena and i've definately seen a lull in listings over the past month. Not much new coming onto the market for SFR. The few listings that have come on the market are very pricey homes north of $700k.

[stan derrin]

How and why anybody justifies paying more than 300k for a 1300sf shack in sherman oaks is way beyond me.
I understand that people are willing to pay twice that but it is astounding.
I have seen a few 1300sf foreclosure listings on valleyheart drive in the 500k + range and they needed to be gutted as they had old cheap kitchen/baths and or had had horrible modifications.It is bewildering how this market has kept up in this area.Sherman oaks is an average area in the scheme of things-horrible traffic and pollution from the 101.I know as i live close-by.
Most liveable homes in sherman oaks are 650k or more.
I dont know how or who is getting financing for these overpriced abodes in todays economic turmoil.Are these rich people or people with inheritances for the downpayment?Or are they doctors.What kind of income/job do you have to have and are there many of these high income earners in LA to support these prices?

[eprobert]

Same here - nothing new in our price range (or any higher, for that matter). It makes a lot of sense - I know that if I wanted to sell my house right now there's no way I would list it unless I absolutely had to.

The only thing I don't understand is what the banks are doing with all their REO inventory. Are they just sitting on it?

[The Original RZ]

Do you think that this new policy that delays foreclosures by 30 days is affecting the inventory (in which case we might see an increase next month)? Or maybe folks have decided to hold onto their homes and sell them later?

[zach]

I hear the new trend is to offer a 10th of the listing price

ie if it is a

1MM price offer 100k

2MM price offer 200k

10MM price offer 1MM,

20MM offer 2MM,

30MM offer 3MM

40MM offer 4MM and so on

if the seller accepts you will not end up getting burned in the short or long run

so far realtors and owners have been cursing, laughing and calling me every name in the book

but I will keep on trying, all I have is time, I will let you know if I get anyone to come back down to earth

I am sure they will break down very soon, that is unless we the taxpayer are forced to invest into the 700 billion bailout, then the RE market crash will be delayed for another 3 years

what a scam : = )

[renter]

Are you kidding me, im ready buy and just waiting for the right price. I will not pay over 200k. If i dont get a nice looking house for 200k in a somewhat good neighborhood fort worth texas looks attractive where houses are fetching for 10k.

[puckhead]

I agree w/Chris Pepper. I'm not looking in Pasadena, but I am looking in surrounding areas and I have noticed a lull in new listings. The houses that are for sale are either way on the lower end or high end. Not too much in the middle.

[Yearning For Home]

Hrmmm... 75th percentile is actually up by $5K. Probably just a consequence of a low number of pricey listings, but still. I don't want to wish pain upon anyone, but for young families such as myself that want to buy into safe neighborhoods with goods schools, I really hope these better homes start taking a hit during the slow Fall and Winter real estate season...

[Anthony]

Prices dropped really fast in August and the first week of September (total of $25,000 decline). I think this lull is just that, a lull. Price declines will continue as long as nothing is selling. Just like the first poster, I am seeing the same overpriced listings in my target areas (miracle mile/melrose/beverly center) sitting on the market unsold for months on end.

[jb]

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Henry Paulson

[E]

Fewer listings? No surprise.

Some people have probably come to the realization that they are "Priced In Forever".

"Priced In" vs. "Priced Out".

I'll take "Priced Out" any day.

At least I'm free....well....sorta.

[Drew]

I'm seeing more and more reasonably priced properties -- and they are selling quickly when priced appropriately.

[Cal]

Inventory peaked last year, there is no way we will hit that level again. The timing of the secondary market crash last year hit at the point of maximum inventory and at a seasonal slowdown pushing it even higher.

Inventory should absolutely moderate and even be lower next spring, it'll be vast majority distressed sales with a few owner with equity moving for life reasons. Very little discretionary selling. Sales should be a bit better, maybe 10%, but not dramatically so as prices continue to drop. Even with an economic slowdown there is enough demand that I think sales will be above these historically extremely low levels.

[ART]

Burbank has been very quiet also.

[MyLessThanPrimeBeef]

Note to potential sellers: If you don't sell your house, it doens't mean your problem has gone away.

[rew]

Here's the trend:

http://www.pixentral.com/show.php?picture=1m0Yp6sSt5jA9iHHqLTe9bD3MNCf

[zach]

Cal are you a RE agent ?

you sure sound like another one

if you want this to end this is what you need to do,

tell your sellers to price their homes at 1980 prices and then they will sell them and you can get off of the top ramien diet

if their homes are newer than 1980 tell them sorry they got screwed and they have to take a 90% loss

at least they will avoid 10 years of taxes, maintence, fees ect, it is a far better deal than holding onto their precious estates for 10 years

just sayin,

:)

[Amazing_Happens]

HA! That is a good one, JB. Too bad we don't have the choice to hit "delete", instead we're forced to participate in this scam.

[puckhead]

Oh God, we finally got E to calm down and now we get Zach the Wack. You meet the most interesting people on the internet.

[zach]

so puckhead I take it that you are another broke RE agent or are you the broke actor from MTV ?

if you are an agent you should get on the phones and get some clients instead of wasting your time on here

do you speak chinese ? I hear they are still loaded and are buying in LA

me I am fine I bought in the 80's

I do admit that I wish I was smart enough to sell in 2006 but then again I will not have to worry about buyer backlash which is still around the corner

and I still wonder when the bottom will fall out

when the fed cannot get their 700 billion ?

:)