Thursday, July 26, 2007

Other measures of Los Angeles beach cities market activity, June 2007

Shorewood has graciously published June numbers.

For the beach cities (El Segundo; Manhattan, Redondo, and Hermosa Beach), average days on market (DOM) has edged down to 40.

If you read this blog, you'll know that I recently calculated a Redondo Beach median time on market at 3 months and average time on market as almost 4 months (117 days). My average DOM for Redondo Beach is almost 3X what Shorewood calculates for the beach cities for June.

Supply strength (AKA demand weakness) continues to crawl back up. Shorewood reports inventory at 582 and sales at 181.

And finally, median price, though off from its $1 million record high from the prior month, remains very high. It is the upscale homes that are propping up median prices in this market. Shorewood even says in its report that the higher-end homes are propping up the Southland sales market in general.

Having just written my 3-part article about the last great historical housing slump in this area, I was very amused to find this quote in Shorewood's press release:

“We continue to be optimistic that South Bay home prices – particularly in the more affluent beach communities – will remain strong, and that buyers waiting for major price declines may be disappointed. It all comes down to continued strong demand, limited supply and the overall desirability of these markets."

Let's make a note of the date: July 24, 2007.

Now, let's see what Shorewood said on the brink of the last major downturn (circa 1990):

"If [buyers] are waiting for the bottom to fall out, they are waiting in the wrong neighborhood. There just has never been any evidence of that in the South Bay.”

Maybe the guys who issued the July 24, 2007 press release ought to have checked with the guy who said that in 1990, ya think?


Blogger Mike said...

good to see you back posting again. hope to see more in the coming weeks.

3:06 PM, July 27, 2007  

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