Simon says: "What happened to our real estate values in 2007?"
Simon says: "What happened to our real estate values in 2007?"
Written by Simon Salloom. Originally Published in the Santa Monica Daily Press.
So, is everyone ready to see how 2007 stacked up against 2006? And, how it looks compared to our peak in 2004? Please note that in this article, 2004 is considered the peak of our most recent housing boom because of the number of transactions that occured.
In 2007, Santa Monica Single Family Homes hit their highest median sales value of $1,691,750. In 2006, the second highest year on record, we ended with a median sales price of $1,575,000. The sales dollar volume (the amount of dollars spent on Santa Monica houses) was up from $510,541,226 in 2006 to $569,571,243 in 2007.
The number of days on market in 2007 averaged 46 days, (up two days from 44 days in 2006). The number of single family properties sold was 263 in '06 and 270 in '07.
Overall, Single Family Homes in Santa Monica did notably better in 2007 versus 2006. The increase in the median sales price by about $100,000 and a slight increase in the number of homes sold, is in striking contrast to the media's accounts of collapse and misery.
Santa Monica Condominiums had a different experience. Santa Monica Condos had a median sales price in 2006 of $755,000. In 2007 the median sales price increased to $783,000. Sales volume was at $417,848,122 in 2006. While in 2007, sales volume was down notably to $358,869,970.
The average days on market was about two months (57 days) with a total number of sales at 408; this is a decrease in the number of sales from 485 in 2006. It is also an increase of almost two weeks from the 44 days on market experienced in '06.
In consideration of the decrease in number of sales and the almost two week increase in days on market, the demand for condos went down in 2007 over 2006, even though median sales values increased.
A more studied approach of the condo market will show that higher-end condos (properties sold for over $850,000) had shorter days on market than the lower end condominiums. And, the North of Wilshire neighborhood faired better than most other condo markets.
Last year also experienced a significant mortgage industry shake-up. First-time homebuyers are the most suceptible to increased lender scrutiny, and these are the people who buy entry level condos. My guess is that once the mortgage industry settles down, and it becomes easier to attain mortgages, the condo market will begin feeling a little better.
At the height of the condo market in 2004, the average days on market was 42, there were 677 sales and a total sales volume of $465,763,460; the median sales price was $622,000.
For single family homes in Santa Monica in 2004, there were 333 sales, the average days on market was 37 and the Sales Dollar Volume was $549,427,055. The median sales price was $1,425,000.
So, some changes to our market yes. Misery, tragedy, desperation-- no.
Written by Simon Salloom. Originally Published in the Santa Monica Daily Press.
So, is everyone ready to see how 2007 stacked up against 2006? And, how it looks compared to our peak in 2004? Please note that in this article, 2004 is considered the peak of our most recent housing boom because of the number of transactions that occured.
In 2007, Santa Monica Single Family Homes hit their highest median sales value of $1,691,750. In 2006, the second highest year on record, we ended with a median sales price of $1,575,000. The sales dollar volume (the amount of dollars spent on Santa Monica houses) was up from $510,541,226 in 2006 to $569,571,243 in 2007.
The number of days on market in 2007 averaged 46 days, (up two days from 44 days in 2006). The number of single family properties sold was 263 in '06 and 270 in '07.
Overall, Single Family Homes in Santa Monica did notably better in 2007 versus 2006. The increase in the median sales price by about $100,000 and a slight increase in the number of homes sold, is in striking contrast to the media's accounts of collapse and misery.
Santa Monica Condominiums had a different experience. Santa Monica Condos had a median sales price in 2006 of $755,000. In 2007 the median sales price increased to $783,000. Sales volume was at $417,848,122 in 2006. While in 2007, sales volume was down notably to $358,869,970.
The average days on market was about two months (57 days) with a total number of sales at 408; this is a decrease in the number of sales from 485 in 2006. It is also an increase of almost two weeks from the 44 days on market experienced in '06.
In consideration of the decrease in number of sales and the almost two week increase in days on market, the demand for condos went down in 2007 over 2006, even though median sales values increased.
A more studied approach of the condo market will show that higher-end condos (properties sold for over $850,000) had shorter days on market than the lower end condominiums. And, the North of Wilshire neighborhood faired better than most other condo markets.
Last year also experienced a significant mortgage industry shake-up. First-time homebuyers are the most suceptible to increased lender scrutiny, and these are the people who buy entry level condos. My guess is that once the mortgage industry settles down, and it becomes easier to attain mortgages, the condo market will begin feeling a little better.
At the height of the condo market in 2004, the average days on market was 42, there were 677 sales and a total sales volume of $465,763,460; the median sales price was $622,000.
For single family homes in Santa Monica in 2004, there were 333 sales, the average days on market was 37 and the Sales Dollar Volume was $549,427,055. The median sales price was $1,425,000.
So, some changes to our market yes. Misery, tragedy, desperation-- no.
posted by Simon at
8:57 AM
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