By Daily Press staff
Despite concerns about the imminent implosion of the high-end housing markets in California, Santa Monica continued to show strength in the first half of 2006.
That is according to a report issued by The Kirshner Group, a westside residential real estate team operating out of the Brentwood office of Coldwell Banker Previews.
According to Wendy Kirshner, the team’s vice president, a total of 151 homes were sold in Santa Monica in the first half of 2006. The total dollar value of those transactions was $295,410,913, an 18 percent increase over the $250,730,113 reported in the same period in 2005.
“The median price of Santa Monica homes also appreciated,” Kirshner noted. “In June 2005, the median price was $1,835,000. At the end of June this year, that had risen to $2,345,000, a gain of approximately 27 percent, indicating a continuing strong market.”
Kirshner, however, said there was evidence of a perception shift taking place in all the housing markets west of the 405 freeway. “Homes are definitely staying on the market longer,” she said. “Those Santa Monica homes sold during the first six months of this year were on the market an average of 30 days; now that has increased to 48 days.
“Thus, the inventory of unsold homes has stretched to between four and six months as compared with less than two months at the beginning of this year.”
Kirshner also pointed out that the days of multiple offers from potential buyers, which drove up prices of homes well above asking price, were probably at an end.
“Between January and June of this year, selling prices of Santa Monica homes averaged 98.42 percent of asking price, much more in line with historic market conditions,” she said.
Sales of Brentwood homes also saw appreciation during the first half of the year, rising approximately 23 percent from $328,299,413 in 2005 to $403,021,750 in 2006. The median price rose to $2,453,000 this year from $1,997,500 last year. Of the three westside markets tracked by The Kirshner Group, only the Pacific Palisades saw a decline of 16 percent in home sales volume from $465,707,583 in 2005 to $389,077,968 this year. Nonetheless the median price of Palisades’ homes rose from $1,835,000 to $2,345,000.
“With the economy beginning to show signs of slowing, concerns about international events making the stock markets nervous and the likelihood of interest rates continuing to rise, we think sellers need to understand that the home sales markets are changing and adjust their thinking accordingly,” Kirshner said. “At the same time, potential buyers who’ve been sitting on the sidelines might take this opportunity to re-enter the market.”
Originally published in the Santa Monica Daily Press print edition on August 23, 2006. Read the original PDF.