For the past few weeks I have heard seasoned real estate professionals state they have never seen a market like this. The recovery in home values on the Westside this year has been dramatic and doesn’t show any signs of slowing down. This is a real life case of Econ 101 with lack of supply+high demand equaling upward price movement.
Most of the U.S. is seeing a strong rebound this year but high-end areas butting up against the coast like Santa Monica and Pacific Palisades are getting an even stronger kick thanks to Santa Monica, Venice and the Marina being commercially robust due to major technology companies flocking to the area thus giving it the nickname Silicon Beach.
Please click on the link below and have access to the Partners Trust single family and condo reports where we compare this year’s 3rd quarter to last year’s 3rd quarter. The comprehensive report stretches all the way out to the valley and some eastside locales. Besides strong increases in the average price sold the number you really want to pay attention to is how the average month of supply of inventory has decreased dramatically. The lack of inventory is bordering on historic levels.
North Santa Monica is seeing 2007 prices with moderately sized nice homes going for over $1,000/1,150 a square foot. Santa Monica in general is up 28.67% with the monthly inventory dropping 57.75%…Pacific Palisades is up 26.72% with monthly inventory dropping 30.14%. More moderately priced locales like Mar Vista are up around 10% and seeing montly inventory dropping alomost 60%. Please remember these numbers are only comparing specific quarters and can be skewed a bit.
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