Tuesday, November 20, 2007

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

Shorewood has published October housing market statistics.

According to Shorewood, DOM has come down to 52, down from 57 in October 2006. There is no resemblance whatsoever between their official beach city DOM statistic and what I calculate. My last calculation for October for just Redondo Beach was a median DOM of 107 days.

Now on to Supply Stength (Demand Weakness). This is a measure of my own making. Notice that it bottomed around the late spring of 2005, when this market was probably at its peak of optimism, and life just couldn't get any better. This ratio is now hitting new highs. Whether it will continue to surge higher over the next few months, or whether the beach cities will instead work off some inventory over the winter, remains to be seen.

Median price for the beach cities was $895,000, up 2.9% from October 2006. There was a surge to new highs this past summer, and the median price has come down from there. Prices are volatile. It's difficult to say from this limited set of historical data what the relationship of October prices has been to, say, February-March prices. Prices do swing up and down, as evident from that 2004 plunge , a time when the market was still booming, relatively speaking. In the meantime, we'll have to just wait and see if the summer surge was the final blowoff, prior to the mortgage lender bomb dropping.


Blogger wannabuy said...


I'm organizing my 2nd lunch. This time in Old Town Pasadena. Interested?

Got popcorn?

1:05 PM, November 25, 2007  

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