Tuesday, May 5, 2009

West Hollywood Market Round-Up -- April 2009

744 N Crescent Heights
Single family homes. Only two homes sold in the West Hollywood area in April 2009. 744 N Crescent Heights, a bank-owned 1,440 sq ft home on a 6,550 sq ft lot just north of Melrose attracted multiple offers and sold for $700,000, below its $735,000 asking price, in 104 days, in an all-cash transaction.

1221 Poinsettia
1221 N Poinsettia, a property in short sale, consisting of a 1,300 sq ft house on a 5,798 sq ft lot with a finished garage, sold for $830,000 in 168 days.

There are so few data points, it’s difficult to draw meaningful conclusions about the market except that buyers are making offers on bank-owned properties and short sales because of their low prices and that these properties are selling in multiple offers. We can also get a sense of how the market has moved. 744 N Crescent Heights sold for $950,000 in May 2006 and for $250,000 less in April 2009. This suggests that prices have fallen at least 26% from headiest days of the boom to the gritty, darkest days of the bust.

The tide seems to be turning – in a big way. There are currently fifteen pending home sales in West Hollywood, ranging in price from $449,000 to $1,699,000. The public’s improving outlook on the economy is now translating to home sales.

718 N Croft Ave

718 N Croft Avenue

Condos. Thirteen condos sold in West Hollywood in April 2009. The median sale price of condos was $434,500. This is a drop from the median sale price of March 2009 ($567,500) but well above the median sale price for February 2009 ($352,500).

For new construction, a 1,679 sq ft unit at 718 N Croft Avenue sold for $785,000 and a 1,298 sq ft unit at 841 Westmount Drive sold for $750,000.

Of the eleven resale units, two were bank-owned foreclosures (the lowest priced units, closing at $285,000 and $286,000) and two were short sales.

There are currently 46 pending sales for condos in the West Hollywood market. Sales of West Hollywood condos should rise significantly in the coming months.