There were 8 sales in the  West Hollywood Single Family Market  in November, up slightly from 5 sales last month at an average of $635/sq.ft, up from the YTD average at $605/sq. ft. and down 17% from the market peak of 2007. There were 3 expired and 4 withdrawn listings in the area during this period. With 60 active  listings, and an average of 5 sales per month YTD , current SFR inventory is at 12 months supply, down from 15 months  in October. REO, or bank-owned property in West Hollywood  is currently at 59 units, or an additional 11.8 months supply.  As I have noted in previous market reports, a pipeline of 1-2 months supply of unlisted REO property is considered normal.

In the West Hollywood Condo Market, there were 31 sales in November, at an average of $475/sq. ft.- up from the YTD $444/sq.ft. and down 13% from the 2007 market peak of $544/sq.ft. There were 24 expired and 1o withdrawn listings during this period. There are 169 active condo listings , and an average of 25 sales per month YTD, current inventory  is at 6.7 months supply, down considerably from 12 months  in October. REO numbers for Weho condos are at 33 units, or about 1.3 months of unlisted inventory. While active listings are much lower in this area, the number of sales plus expired and withdrawn listings does not account for the shortfall in inventory, which leads me to think we are going to see lots more of REOs in this area in the future.

There were 16 sales in November in the Beverly Center-Miracle Mile Single Family Market at an average of $489/sq. ft., up from the YTD $471/sq.ft. and 18% below the 2006 market peak. There were 6 expired and 7 withdrawn listings in this area during this period. With 68 active listings, and an average of 12 sales per month YTD, this indicates an inventory of 5.6 months supply, virtually unchanged from last month. There are also 100 REO (bank-owned) properties in the area at the moment which gives us 5.6  months of unlisted inventory- well above the average of a 1-2 month “pipeline”.

In the Beverly Center-Miracle Mile Condo Market  there were 10 sales in November at an average of $462/sq. ft. , up from the YTD $444/sq.ft., and 17% below the 2006 market peak. With 60 active listings, and an average of 6.8 sales per month YTD, this puts the condo inventory at 8.8 months supply, up from 5.6 months in October. With 34 REOs, there is 5 months of unlisted inventory, about the same as last month.

In  the  Hancock Park-Wilshire Single Family Market, there were 14 sales in November at an average of $406/sq. ft., down from $449/sq.ft. YTD and 26%% below the 2006 market peak. There were 10 expired and 8 withdrawn listings in the area during this period. With 65 active listings, and an average of 14.4 sales per month YTD, that leaves us with an inventory of 4.5 months supply, down from 5.6 months  in October. There are 33 REOs currently, which gives us 2.4 months of unlisted SFR inventory- which is close to a “normal” level for an REO pipeline.

In the Hancock Park-Wilshire Condo Market, there were 17 sales in November, up considerably from 4 sales last month, at an average of $331/sq.ft.,  up slightly from $325/sq.ft. YTD and is 26% below the 2006  market peak. With 100 active listings and an average of 13.2 sales per month YTD, that gives us an inventory of 7.6 months supply, up from 5.6 months supply in October. At the moment there are 49 REOs which is equal to 3.7 months of unlisted inventory.

There were 5 SFR ( single family residence) sales in October in the  West Hollywood area, with the YTD average at $605/sq. ft.- down 21% from the 2007 market peak of $760/sq. ft.  According to the MLS there are 72 active SFR listings, an average of 4.8 sales /month YTD which gives us an inventory of 15 months supply. REO, or bank-owned property in West Hollywood not listed with a broker is at 74 units, or an additional 15 months supply. As I have noted in previous market reports, a pipeline of 1-2 months supply of unlisted REO property is considered normal.

In the West Hollywood Condo Market, there were 27 sales in October, with the YTD average at $445/sq. ft.- down 18% from the 2007 market peak of $544/sq.ft. There are 299 active condo listings, an average of 24 sales/month YTD which  gives us an inventory of 12 months. REO numbers for Weho condos are at 37 units, or about 1.5 months supply.

The numbers pretty much speak for themselves, as inventory numbers threaten to expand considerably in the SFR market, the condo market inventory has come down since the beginning of the selling season. In order to get back to a more “normal “supply of 6-7 months, especially with Option ARM/Interest-Only resets coming for the next 2 years, it seems inevitable that prices, especially in the single family market here in West Hollywood are going to have to come down.

According to the MLS, there were 15 SFR sales in October in the Beverly Center-Miracle Mile area at an average of $466/sq. ft., which is 21% below the 2006 market peak. With 61 active listings, and an average of 11.6 sales per month YTD, this indicates an inventory of 5.5 months. There are also 99 REO, or bank-owned properties in the area at the moment. Although it is common to have a 1-2 month pipeline for REO property that is not yet listed with a broker, another 99 houses represents an additional 8.5 months of unlisted, or “shadow inventory.”

In the Beverly Center-Miracle Mile condo market  there were 4 sales in October at an average of $442/sq. ft. which is 16% below the 2006 market peak. With 37 active listings, and an average of 6.5 sales per month YTD, this puts the condo inventory at 5.7 months. With 30 REOs, there is 4.6 months of unlisted inventory.

In  the  Hancock Park-Wilshire area, there were 20 SFR sales in October at an average of $453/sq. ft., which is 19% below the 2006 market peak. With 82 active listings, and an average of 14.6 sales per month YTD, that leaves us with an inventory of 5.6 months supply. There are 44 REOs presently, which gives us 3 months of unlisted SFR inventory.

In the Hancock Park-Wilshire condo market, there were 4 sales in October at an average of $324/sq.ft. which is 26% below the 2006  market peak. With 72 active listings and an average of 12.8 sales/month YTD, that gives us an inventory of 5.6 months. At the moment there are 45 REOs which is equal to 3.5 months of unlisted inventory.

In sum, it would appear that inventory has contracted in both areas , and to some market observers, may even appear to be a “seller’s market.” What is unclear however, is the amount of  unlisted REOs and to what extent more property coming on the market will put downward pressure on prices in the near future, especially with 2 years worth of Option ARM /Interest-Only resets on the horizon. While there has been some improvement in  these areas, my feeling is that we are going to have quite a bit of inventory to go through before we can describe current market condtions as a”seller’s market.”

If you have any questions, comments, or need more information specific to your neighborhood, please do not hesitate to contact me.