Santa Monica,90405 Single-Family Residence Market Trend

Santa Monica's real estate market in the 90405 zip code has fluctuated, particularly regarding the Market Action Index (MAI) and median list prices.

As of this week, the median list price for single-family residences 90405 stands at $2,325,000. The average price per square foot is $1,288, representing a downward shift compared to previous weeks. This market has advantages for both buyers and sellers.

Inventory and Demand

The rise in inventory levels plays a role in the list prices. Currently, 13 properties are up for grabs, marking an uptick from the counts of previous weeks. This surge in supply, in conjunction with a dip in demand influenced by debt ceiling discussions and market volatility, might be the underpinnings of the market's subtle cooling trend.

Real estate markets can be complex; local factors, the specific properties involved, economic conditions, and many other variables can all influence market dynamics. However, understanding the basics of inventory, demand, and the MAI can give us a helpful perspective on general market trends.

Market Forecast

A slight Buyer's Market zone could intensify downward pressure on prices slightly. Signs of price reductions are already emerging, hinting that this process may have commenced. However, it's worth noting that the depreciation rate remains moderate and not particularly robust. The home sellers are still in a great position.

This presents an excellent opportunity for potential homebuyers to secure an advantageous deal on properties. With interest rates predicted to drop, we'll likely see a surge in competition as more buyers enter the market. Currently, buyers have considerable negotiating power due to less competition. You should consider this opportunity before the imminent decrease in interest rates brings a flood of buyers back into the market. This upcoming shift in market dynamics makes it a prime time to capitalize on the current conditions.

Single Family Residence Market Activity, 90405, Santa Monica

A closer examination of specific market segments reveals some interesting insights:

These market segment data demonstrate a generally robust market. Despite the overall trend, homes only stay on the market for a short period. In particular, properties with lot sizes between 4,500 - 6,500 sqft and prices between $1.8M to $2,350 are selling relatively quickly, with a median duration on the market of just 24-35 days.

Bottom Line

Though the Santa Monica 90405 real estate market has seen a slight dip recently, the overall trend remains reasonably healthy. Homes are selling relatively quickly, suggesting that while buyers may have more options, they still show strong interest in this market.

Inventory levels continue to present a challenge, placing sellers at an advantage due to the substantial equity buildup during the pandemic years. However, higher interest rates than those during the pandemic have shifted some advantages toward the buyers. The frenzied multiple-offer market we experienced during the pandemic has settled down, giving buyers a stronger negotiating position to secure a more favorable deal.

Staying vigilant is crucial, given the often unpredictable and rapid shifts in real estate markets. While we can make educated projections, unexpected events can arise and dramatically reshape the landscape of the real estate market.

Santa Monica 90405 Condo Market Trends

The Santa Monica 90405 zip code condominium market has shown signs of cooling recently. There's a noticeable shift in the balance between supply and demand, with a rise in available properties and a slight decrease in demand.

This week, the median list price for condos in Santa Monica 90405 is $1,245,000. We also see a price per square foot of $1,017 and a median rent of $3,995. These figures represent a decrease from the Market Action Index (MAI) of 48 recorded last month.

An interesting pattern to note is the increase in inventory, which has risen to 17 condos on the market. This supply growth and somewhat weakened demand could be behind our slight cooling trend. Furthermore, there's already some evidence of prices starting to move lower.

If we continue to see a persistent downward trend from Seller's Market zone to the Buyer's Market zone, it's reasonable to expect further downward pressure on prices; however, price depreciation will not be significant.

Market Segments, 90405

Let's delve deeper into Santa Monica,90405 condos, considering factors such as the price per square foot, the final sold price, the time the condo spends on the market, and the overall square footage of the condo space.

The data indicate that condos priced between $630K and $1.5M are moving exceptionally fast, with an average time on the market of just 21 days. This swift turnover highlights the high demand for condos within this price bracket. Both sellers and buyers must be aware of this trend as it can significantly inform their decisions and help them secure the most advantageous deal.

In Summary

Adopting a marketing mindset, sellers should understand the importance of appropriately and accurately pricing their condos to capture the attention of potential buyers. Overpricing could lead to the property lingering on the market, becoming stale, and eventually selling for less than anticipated. Strategic pricing is, therefore, crucial in this market.

While multiple offers are still somewhat familiar to buyers, the competition is less fierce than before. If a condo piques your interest, don't hesitate to jump in. Ensuring you have a strong representation and an attractive offer presentation can make your bid stand out. Our team is here to help you in this process.

Your Santa Monica Realtor

When navigating the real estate market, either as a buyer or seller, wouldn't you want a professional who is knowledgeable and carries the empathetic heart of a teacher? A professional who not only educates and advocates for you but is also deeply familiar with the local area? A realtor who places your best interests at the forefront? If your answer is 'yes', then I am the realtor you're seeking. My commitment to your success will give you a compelling advantage in this competitive real estate environment.

Santa Monica, 90405 Latest Real Estate Data