Wednesday, February 4, 2009

Silver Lake / Echo Park Market Round-Up: January 2009

Modern House and View of the Silver Lake Hills, Los AngelesSilver Lake/Echo Park (Area 21): 17 houses closed in Silver Lake / Echo Park in January 2009. Only two of these homes sold for over $1 million, while seven were priced less than $400,000 – six of them foreclosures. The skewing of prices to the low end reveals how the tight jumbo loan market is and how sales of bank-owned properties (with motivated sellers and buyers eager to get ‘deals’) are ‘making the market’.

In January 2008 only 11 houses closed in Silver Lake / Echo Park, three selling for more than $1 million, the lowest sale price $499,000. The median sale price in January 2008 was $705,000. The median sale priced in January 2009 was $580,000. The drop in median price shows how much sales activity is at the lower end.

The highest priced sale in January 2009 was $1.36 million – 2101 Redcliff, a 2,343 sq ft Spanish house in the Ivanhoe School District with 360 degree views. Originally priced at $1,895,000, the house sold after 124 days for $533,000 less than the original asking price.

On the low end, two REOs, 219 N Bixel Street (south of the 101 Freeway) and 2221 Effie Street (at Glendale Boulevard) both sold for $150,000. The average days on market (DOM) for January 2009 sales was 44. The average $/sq foot for January 2009 sales was $398/sq ft. This $/sq ft figure is down from $500+ sq/ft of previous years.

So much of the sales activity in Silver Lake / Echo Park is foreclosures, the $/sq ft statistic becomes almost meaningless, except to reveal the vast quantity of bank-owned properties (and short sales) working their way through the system.

Jamie Adner