According to Dataquick (which tracks all sales in specific areas), we have seen solid price erosion based on price per square foot numbers over the last 2 years thru March 2008. Many people feel these numbers have signaled a bottom in the market prompting buyers to come off the sidelines. Despite tough lending standards, prices have begun to stabilize and even rise lately with buyers less fearful and inventory being limited.
Please be careful when looking at these numbers since the Westside and Manhattan Beach operate on a micro market level. The price drop for homes in good condition with a great floor plan is less than a home that needs to be remodeled. Furthermore, land is KING in coastal communities. Buyers pay a premium for a larger lot and it is a good investment as the average lot size in California continues to shrink (was over 7,500 feet in the early 1980’s and is now down to about 5,400 feet) along with stricter building codes limiting how big a home can be based on lot square footage. Keep these things in mind when valuing a home and why a discrepancy in price can happen between homes within a few blocks of each other.
That said, the overall numbers speak for themselves and it will be interesting to see where the market goes from here.
Beverly Hills 90210 (2008) $851 (2010) $516 (-39.4%) 17 sales
Manhattan Beach 90266 (2008) $826 (2010) $602 (-28.1%) 26 sales
Santa Monica 90402 (2008) $962 (2010) $724 (-24.8%) 10 sales
Brentwood 90049 (2008) $818 (2010) $632 (-22.8%) 17 sales