Monday, October 09, 2006

Local market observations

My fiance' and I did a little tour of homes on Sunday 10/8/2006. We really only planned on looking at 2 houses (we didn't start until 3:30pm), but instead we checked out a large number.

Observations:
1. Homes are falling out of escrow. Out of about 20 homes we looked at, 3 were back on the market due to homes not closing.
2. N. Juanita is out barometer (Redondo Beach, CA). There is one block with 5 nice townhomes for sale. While not our first choice, they're an ok backup. The last sale on this block was in January. All townhomes have been on the Market since Febuary. No movement in 7 months. Two of the townhomes proudly sported "sold" or "In escrow" sub-signs for about a month. Both are back on the market. Two more townhomes are under construction on this street (in framing).
3. Man are realtors desperate to be buyers agents. One realtor even anounced she wasn't the listing agent but rather the buyer's agent. I had a few words for her.
4. We're seeing 3 townhomes that are identical for sale near the beach in redondo. Each is trying to be $10k less than the others. The rear unit people seem to be the most willing to cut... and cut... and cut... But $1.24M isn't there yet.
5. Lots of construction still progressing. Some gorgeous new homes just completed.
6. Prices are all over the map. 30% differences in equivalent properties. The price point de jour seems to be $1.2 to $1.3 million.


My comment? Price drops will continue to be slow. But if sales drop much more or inventory builds at all... free fall.

Neil

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