Dilbeck Real Estate's MARKET UPDATE Current Real Estate Market Conditions for Single Family Homes Trends in Pricing Current Levels of Supply and Demand Value Metrics Report for the week of December 31, 2012 Presented by Dilbeck Real Estate Customer Care Dilbeck Real Estate www.dilbeck.com - info@dilbeck.com 1-877-345-2325 Powered by Altos Research LLC www.altosresearch.com Copyright 2005-2010 Altos Research LLC
City Overview This Week Real-Time Market Profile Trend The median list price in LOS ANGELES, CA this week is $398,000. The 2222 properties have been on the market for an average of 153 days. Inventory has been lightening lately and the Market Action Index has been trending up. These are mildly positive indications for the market. Supply and Demand The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes. Median List Price Average List Price Asking Price Per Square Foot Average Days on Market (DoM) Inventory of Properties Listed Most Expensive Listing Least Expensive Listing Average Age of Listing Percent of Properties with Price Decrease Percent Relisted (reset DOM) Percent Flip (price increased) Median House Size (sq ft) Median Lot Size Median Number of Bedrooms Median Number of Bathrooms Market Action Index Altos Research Value Statistics Buyer's Advantage $ 398,000 $ 274 153 25 % n/a 10 % 1447 4,501-6,500 sqft 3.0 2.0 24.4 The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies a seller's advantage. Below 30, conditions give the advantage to the buyer. Trend Key: ±+ No change $ 1,143,619 2222 $ 125,000,000 $ 28,427 ±+ ±+ ±+ == == Strong upward trend Strong downward trend = Slight upward trend Slight downward trend 72 Characteristics per Quartile Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM Top/First $ 1,579,000 2932 8,001-10,000 sqft 4.0 3.0 60 555 18 59 159 Most expensive 25% of properties Upper/Second $ 594,900 1604 4,501-6,500 sqft 3.0 2.0 78 555 29 66 124 Upper-middle 25% of properties Lower/Third $ 289,900 1280 4,501-6,500 sqft 3.0 2.0 88 556 57 66 152 Lower-middle 25% of properties Bottom/Fourth $ 186,875 1032 4,501-6,500 sqft 2.0 1.0 87 556 45 69 176 Least expensive 25% of properties Page 2 of 11
City Overview Median Price Despite this week's down tic, the market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this shift. Quartile Prices Prices have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels. Page 3 of 11
City Overview Price per Square Foot The market plateau is seen across the price and value. The price per square foot and median list price have both been reasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves from these levels. Inventory of Properties Listed for Sale Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply. Page 4 of 11
City Overview Market Action Index The LOS ANGELES market is currently in the Buyer's Advantage zone (below 30), though not strongly so. The 90-day Market Action Index stands this week at 24.42 so buyers should expect to find reasonable levels of selection. Buyers/Sellers Cutoff Market Action Index per Quartile Not surprisingly given the overall Market Action Index, all quartiles are in the Buyer's Market zone with several months of inventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall market shifts. Often one end of the market (e.g. the low end) will improve and signal a strengthening market before the whole group changes. Buyers/Sellers Cutoff Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer s Advantage zone (below 30) for a long period, prices are likely in for a downward correction. Page 5 of 11
City Overview Days on Market The properties have been on the market for an average of 153 days. Half of the listings have come newly on the market in the past 85 or so days. Days on Market per Quartile It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles. Page 6 of 11
Neighborhood Detail This Week Real-Time Market Profile Trend The median list price in LOS ANGELES, CA this week is $519,000. The 30 properties have been on the market for an average of 112 days. The Market Action index has been trending down lately, while days-onmarket is climbing, providing mostly bearish signs for the market. Supply and Demand The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes. Median List Price Average List Price Asking Price Per Square Foot Average Days on Market (DoM) Inventory of Properties Listed Most Expensive Listing Least Expensive Listing Average Age of Listing Percent of Properties with Price Decrease Percent Relisted (reset DOM) Percent Flip (price increased) Median House Size (sq ft) Median Lot Size Median Number of Bedrooms Median Number of Bathrooms Market Action Index Altos Research Value Statistics Buyer's Advantage $ 519,000 $ 366 112 17 % n/a 10 % 1422 6,501-8,000 sqft 3.0 1.2 27.4 The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies a seller's advantage. Below 30, conditions give the advantage to the buyer. Trend Key: ±+ No change $ 716,296 ±+ == ±+ == Strong upward trend Strong downward trend = Slight upward trend Slight downward trend 30 $ 3,858,000 $ 170,000 72 Characteristics per Quartile Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM Top/First $ 699,000 2388 8,001-10,000 sqft 4.0 2.5 60 7 1 0 133 Most expensive 25% of properties Upper/Second $ 649,000 1788 4,501-6,500 sqft 3.0 2.0 83 7 0 0 76 Upper-middle 25% of properties Lower/Third $ 446,950 990 6,501-8,000 sqft 2.0 1.0 87 8 0 1 134 Lower-middle 25% of properties Bottom/Fourth $ 341,000 850 4,501-6,500 sqft 2.0 1.0 87 8 0 0 106 Least expensive 25% of properties Page 7 of 11
Neighborhood Detail Median Price Prices in this zip code have been on a downward trend recently and this week, while essentially flat, doesn't break us out of that cycle. Quartile Prices In the quartile market segments, we see prices in this zip code have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels. Page 8 of 11
Neighborhood Detail Price per Square Foot Despite recently falling prices, the price per square foot has stayed reasonably flat. This implies that there's a portion of the market being priced at a premium. You can investigate this condition in the quartile details. Inventory of Properties Listed for Sale Inventory has been relatively steady around these levels in recent weeks. Page 9 of 11
Neighborhood Detail Market Action Index The LOS ANGELES, market is currently in the Buyer's Advantage zone (below 30), though not strongly so. The 90-day Market Action Index stands this week at 27.36 so buyers should expect to find reasonable levels of selection. Buyers/Sellers Cutoff Market Action Index per Quartile Three of the four quartiles of this zip code are in the Buyer's Market zone with several months of inventory given the current levels of demand. Quartile 2 (the upper-middle price group) is showing stronger demand than the others, as a Seller's market. Buyers/Sellers Cutoff Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer s Advantage zone (below 30) for a long period, prices are likely in for a downward correction. Page 10 of 11
Neighborhood Detail Days on Market The properties have been on the market for an average of 112 days. Half of the listings have come newly on the market in the past 82 or so days. Days on Market per Quartile It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles. Page 11 of 11