Los Angeles County Condo Sales for October 2007

Homes and condos are two different types of real estate products. As such they often have different sales figures as far as percentages to report.

By far there are no where near as many condos in Los Angeles County as there are homes. Some cities have very few while others have a large amount. Cities such as Long Beach, the second largest city in Los Angeles County, have a large number of condos available. Santa Monica, Torrance, and Los Angeles also have a large number of condos. So let's take a look at the numbers.

October Sales

• 2006 - 1,944
• 2007 - 1,092

So what does this all mean? Condo sales are down just over 44% across all of Los Angeles County. Now we said this in the home report as well that prices are not down the same percentage and that of course is always reassuring. Condo sales are down less than home sales. We believe the reason for this is condos tend to be more affordable than do single family homes. The programs that are available for first time home buyers are still fantastic and many more people can afford the price of a condo than that of a single family home. It will likely be awhile before we return to the sales numbers of 2007 for condos but they are still a very nice real estate choice.

Los Angeles County Home Sales for October 2007

It is winter here in southern California. Now I don't think anyone in any other part of the country is going to sympathize with what we call winter but never the less that is what it is around here. Home sales take a back seat to Thanksgiving dinner and to Christmas shopping. Let's take a look at what is happening for the entire county for October of 2007. Countywide sales stats are available late which is why it is December and we are reporting on October sales information.

This chart shows only home sales for Los Angeles County and does not include the sales of condos.

• Sales in October 2006 - 5,599
• Sales in October 2007 - 2,638

So what does this mean? Well it means that sales are off about 53% of what they were in 2006. So are prices down 53%? The answer to that is no. Are interest rates up 53%. The answer again, no. Overall the pace of sales has slowed however the median price of homes has actually gone up and interest rates, while they have rise, have gone up modestly. In fact interest rates are still at very low levels when you look at them in a historical context.

We still believe that there is plenty of opportunity out there for buyers to find the right property. While sales are down there are still plenty of willing sellers anxious to work with a buyer who would like to purchase their home.

Large Amounts of Equity Available even with Price Drops

With all of the doom and gloom in the real estate market it appears that when the media trys to demonstrate some of the positive aspects of the market it often gets missed. Kenneth R. Harvey, of the Washington Post Writers Group was recently published in the LA times with his article, "Price drops are sobering, but the big picture is still rosy".

Here he accurately covers that although there have certainly been price declines, there is substantial liquidity in the market. This is evident in the fact that there is still a large equity position that the many owners have. Here some some of the facts from his artcile:

• Federal Reserve calculated that U.S Homeowners equity accounts total 10.9 Trillion
• In areas like Fort Myers of Florida where they have experienced a 130% jump in the last 5 years, where prices have recently dropped almost 14% still means they are up 116% in the same time period
• Home Builders in Los Angeles state prices fell 5.7% in the last 12 months, but that still means they are up a net 88.9% since 2002

Data like this is often hard to find....why? Does the mainstream media like to sell ads so badly that they instill panic when it isn't well founded? Let's hear your thoughts.

How many homes are selling in Los Angeles County

Everyone has been reading about what is selling and what is not selling but it is still hard to find out just how many homes have sold. Most cities within Los Angeles county have seen the demand for property drop. Overall rates have not shifted significantly from last year. It is still a great time to purchase when you look at where rates are historically. With that said the number of homes sold across Los Angeles County is down.

We thought we would chart for everyone the sales for the last couple of months of homes sold. This data comes from what has been recorded and does not include condos which we will include tomorrow.

So what does this chart tell us. It tells us a few things for sure.

• August 2007 sales are off slightly more than 42% from the same month as last year.
• September 2007 sales are off 57% from the same period as last year.

These numbers are quite sobering. 2006 was already a year that was down from the previous records and we are off well 2006 pace. The good news in this is that to borrow money and to use first time home buyer programs is still a great opportunity. If you are selling consider your listing price carefully and make sure that you are committed to selling your property. Understand as a seller the easier you make it for the buyer to purchase your property the easier everything will be.