In reviewing the 4th quarter Hollywood Riviera sales data, it’s hard to believe but the numbers make for a rosey picture. 14 homes have SOLD this quarter already – October 1st, 2008 – thru today, December 8th. That is a 100% increase over the number of homes sold this same period of time in 2007. 2007 saw only 7 home sold during that time! Hard to believe and even more hard to believe is the fact that the data reflects an increase in the average price of the 4th quarter homes sold in 2008. The average is $1,055,000 (of the 14 homes sold in 2008) vs. $968,000 for the 7 Hollywood Riviera homes that sold in 2007’s 4th quarter (partial – Oct 1 – Dec 8th, ’07)
With this in mind, I would still report to you that we’ve seen a drop in average price overall in the Hollywood Riviera. We will analyze the entire year 2008 vs. 2007 to come up with that data – it would be my impression that there has been about a 10% drop – we’ll see when I run the numbers. Intuition is different than data, but my intuition is “educated intution.”
There are still homes that are selling very quickly and with multiple offers here in the Riviera AND there are homes that just don’t seem to sell. Typically, it’s all about price – the consensus in the real estate world is that price is the number one reason a house does or does not sell. And we all know about location, location, location – that just means a better location garners a better price! Condition of the home is important – as evidenced by the many “staged” homes these days – but in the end, price is the ultimate consideration making up the minds of buyers! Most want a deal in this buyer’s market. Interest rates are at some of theier all time lows right now – so many buyers are out there looking to scoop up a deal this holiday season!