L.A. Business Journal: Median Home Prices Persist in Steady Decline (August)

According to a September 8 story by Charles Proctor in the Los Angeles Business Journal, home sales in Los Angeles County started sliding again in August after enjoying a bit of a summer bounce. Sales volume was down -23% YOY, and prices are down -30%. The county's median home price in August was $404,000, the lowest since April 2004. And the median condo price fell to $380,000, -17% YOY.

In the north end of the county (Lancaster and Palmdale) falling Ginzu knife investors continued to scoop up "bargains" (with cash) because prices have fallen to around $100,000. Investors are plunking down $1 million on 10 homes and planning to rent them out until prices reach $150,000.

Cash isn't just limited to lower-priced areas. Agents are reporting bigger cash down payments. A $525,000 home in Long Beach that got three offers finally went to a buyer with a $200,000 down payment. Paul Habibi at UCLA Anderson School says that banks are being far too conservative in their financing. Buyers qualified to put 5% down on properties saw rates jump to 20% while in escrow, thus killing the deals. The loan market appears to be continuing its contraction.

-------------------------- SFR --------------------------------
COMMUNITY          ZIP    Aug     %YOY         Aug    %YOY
                         Sales   Change      Price   Change
L.A County              3,134      -24%    $404,000  -30% 
El Segundo       90245      4      -43%    $728,000  -42%
Hermosa Beach    90254      8      -50%    $832,000  -36%  
Manhattan Beach  90266     14      -62%  $1,452,000  -10%  
Redondo Beach    90277      2      -87%    $926,000  -24%
Redondo Beach    90278     12      -45%    $728,000   -9%

------------------------ CONDO --------------------------------
COMMUNITY          ZIP    Aug     %YOY      Aug       %YOY
                          Sales   Change    Price     Change
L.A. County              1,171      +0%    $380,000   -17%
El Segundo       90245       3    +200%    $720,000    +4%
Hermosa Beach    90254       5      67%  $1,105,000   -37%
Manhattan Beach  90266       6     500%    $999,000   +15% 
Redondo Beach    90277      12     -14%    $481,000   -30%
Redondo Beach    90278      24     -11%    $751,000   +12% 

The most expensive homes (SFRs) in August were in Santa Monica 90402 (+197% YOY); Calabasas 91302 (+68%); Malibu 90265 (+197%); Playa del Rey 90293 (+27%); Bel-Air 90077 (-4%); Pacific Palisades 90272 (-8%); Pasadena 91105 (+72%); Beverly Hills 90211 (-53%); Palos Verdes Estates 90274 (+9%); Manhattan Beach 90266 (-10%).

The most expensive condos in August were in Bel-Air 90077 (no change - median price $1,400,000); Pacific Palisades 90272 (+102%); Venice 90291 (+32%); Manhattan Beach 90266 (-37%); Palos Verdes Estates 90274 (no change - median price $1,038,000); Hermosa Beach 90254 (+97%); Brentwood 90049 (+35%); Santa Monica 90403 (-10%); Redondo Beach 90278 (+12%); El Segundo 90245 (+4%).

The areas suffering the greatest SFR price losses in August are Westwood 90024 (-73%); Little Rock 93543 (-59%); Beverly Hills 90211 (-53%); Palmdale 93591 (-53%); Hawaiian Gardens 90716 (-53%); Pomona 91768 (-52%); Pasadena 91103 (-52%); Lancaster 93534 (-52%); Inglewood 90302 (-51%); and Compton 90220 (-51%).

The areas suffering the greatest condo price losses in August are Tarzana 91356 (-47%); Panorama City 91402 (-46%); North Hills 91343 (-42%); Van Nuys 91405 (-41%); Sherman Oaks 91403 (-40%); Long Beach 90813 (-40%); Marina del Rey 90292 (-40%); West Hollywood 90069 (-36%); Torrance 90501 (-36%); Mid-City 90019 (-32%).

Keep in mind that most of these figures are tallied on very low sales, so I would take huge spikes or extreme collapses with a grain of salt.