The total inventory of single family homes for sale in the cities listed above is down approx. 35% compared to the prior year, the sales activity is up 10%, and there is only 3 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes. Average price per sq. ft. for homes sold in the 4th quarter 2011 for the cities listed above is down approx. 8& overall compared to the 4th quarter of 2010.
FINANCING (See our web blog at http://mmegowan.activerain.com/ for rate updates):
Interest rates for Conforming Loans ($417,000 and below) are at approx. 3.9%, approx. .5% lower that at the end of last quarter. Rates for loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.0% ( a reduction of about .5% from last quarter end. Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $625,500) have an average rate of approx. 4.5 to 4.75%, approx. the same as the prior quarter. The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR rates as of 1/15/2011, and assume a 20% down payment, no points and a FICO score of at least 740.
The inventory of condos and townhomes for sale of 42 units at the end of the 4th quarter of 2011 continues to fall dramatically from its peak in March 2011 ( a 54% decrease) and is 37% lower than a year ago. Sales volume for the quarter ws also 11% higher than last year, which has resulted in a reduction to only a 4 month inventory of condos and townhomes for sale.