Homes Los Angeles County December Market Wrap-up
The numbers are in, and Los Angeles home prices are bouncing back. According to the Los Angeles MLS database (MRMLS), single family residence home data shows that median prices in December 2009 have risen past December 2008 by 3%. It appears the market is stirring to life again, with excitement in the air for 2010.
Data released for the month of December showed the Los Angeles County housing market gaining strength in this traditionally slow month. The median price paid for a Los Angeles home increased to $390,000 from $380,000 a year ago. This is not quite a booming real estate market yet, but this slow upturn in prices is encouraging news.
This recent improvement in home prices is driven by mainly first-time home buyers and investors purchasing deeply discounted foreclosed homes and other properties in distress. The number of foreclosure sales as a percentage of the entire resale market has continued to drop since the peak in February 2008. Foreclosures will continue for years, but not in as great of numbers as this last year. The year 2010 will still show strong foreclosure statistics though, as homeowners still continue to be upside down in their mortgages. Next years recovery could still be affected by so many cheap homes flooding the market.
I would recommend first time home-buyers taking advantage of the $8,000 Home-Buyer Tax Credit. This is a great time to buy a Los Angeles home with low prices and a strong tax credit to help out. Be ready to be involved in bidding wars for the next coming months as the tax credit will be coming to it's end. There is also a lower inventory of homes on the market compared to last year, so be prepared to see many buyers out in droves buying. This makes for an interesting marketplace, desirable homes being snapped up from first-time home buyers attempting to cash in on such a fantastic tax credit.
Some great news for home sellers is that the Average Days on Market for December 2009 is at 52 days, in comparison to 82 days back in December 2008. That means that homes now listed take 30 days less to sell, 36% less time. Homesellers who price right and are in a desirable area are being able to sell more rapidly, rather than having to have their home sit on the market for months at a time.
Los Angeles county Monthly Supply of Inventory has steeply declined since last year. In December 2008, there was a 9.7 month supply of home versus in December 2009 only a 3.6 month supply of homes. That's a steep decline of 6 months, or 62% down.
Los Angeles County Supply and Demand has had a sharp decline. The total number of homes for sale in December 2009 declined 51% from the same period last year. In December 2008, there were 12,879 homes for sale versus only 6312 homes for sale in December 2009. Sold houses for the same period was 1283 for December 2008 versus 1080 for December 2009. These supply and demand figures represent buyers and sellers still not certain about listing their houses for sale or buying their first home in this economy.
In 2010, it appears to be a great time to buy real estate in Los Angeles county, indicated by investors still currently purchasing in large numbers. This along with so many low-priced foreclosure homes on the market and the continuation of the $8,000 Home-Buyer Tax Credit make 2010 look like another great year for first-time home buyers to enter the home market.
by: Lori EnglishAbout the Author: