Thursday, November 10, 2011

West Hollywood Home Market "In Turnaround"; Home Prices Up 13% Over 2010; Top Sale Touches $3 Million Mark; Hooray, "These Dark Days Are Over"

2011 Median Price up 13% Over 2010 -- Huzzah!
West Hollywood Home Market On the Upswing

There is such pervasive negative sentiment about real estate, one often assumes that all parts of the market are behaving in sync.  The mumble of truly ominous buzzwords -- foreclosure-short pay-bank-owned-distressed-collapse-freefall -- drowns out the news that some parts of the market are doing fine -- and even -- dare we say, are improving.  West Hollywood is one of those improving markets.

What Redfin Won't Tell You

Year to date, the median sale price in West Hollywood is up 13% over 2010 prices.

Indeed, there are foreclosures and short pays (making up 21% of the market during the past 3 months), but it should also be noted that 30% of West Hollywood sales during the same period are over the $1 million mark.

Months' Supply of Inventory in West Hollywood - Down 29% in the Past Year
Furthermore, in the last 12 months the months' supply of home inventory -- a measure of how "tight" the market is -- has declined from 6.4 months to 4.5 months.

Inventory under 6 months is considered a "Seller's Market", so Sellers -- do not hesitate to list your homes -- and Buyers, consider that making aggressively low offers won't yield results.

Let's take a look at some West Hollywood home sales from the past three months.

 1010 North Orlando Avenue - $2,900,000
1010 North Orlando Avenue on a coveted stretch of this wide, tree-lined street, sold for $2,900,000, after a brief 15 days on the market.  It has 5 bedrooms, 4.75 baths (two separate houses) on a large 12,250 sq ft lot.

346 Westbourne Drive - $1,925,000
 346 Westbourne Drive with two structures on a lot and a sparkling pool sold for $1,925,000.  There are a total of 4 bedrooms, 4 baths on a mid-sized 5,528 sq ft lot.

8916 Dorrington Avenue - $1,015,000
8921 Dorrington Avenue - $1,150,000
8916 and 8921 Dorrington Avenue show that buyers are willing to pay over $1 million to live in a  jewelbox of a house in one of West Hollywood's best neighborhoods.  Dubbed "West Hollywood West", this neighborhood consists of approximately 1,000 single family homes.

Lots in West Hollywood West are small -- both of these homes sit on 4,000 sq ft parcels.  8916 has 2 bedrooms, 1.75 baths, and a 1,286 sq ft home and sold for $1,015,000; 8921 has 2 bedrooms, 3 baths and a 2,302 sq ft home and sold for $1,150,000.

740 N Vista Street - $887,000
740 N Vista Street sold for $887,000.  Residents of West Hollywood love their pool homes, even if they're not smack in the center of town.  This 3 bedroom, 1 bath home with 1,515 sq ft sold after a brief 18 days on the market.

1236 N Fairfax Ave - $442,000
1236 N Fairfax Ave, a bank-owned property, gives us an idea of what land value is in a stretch of West Hollywood.  This dilapidated teardown with 3 bedrooms, 1 bath, 1,663 sq ft on a 6,850 sq ft lot sold for $442,000.  A lovely "condo alternative".