The Southern California housing market has seen its highest level of foreclosures in two years this past January, which actually comes as good news for home buyers and sellers in the region. Experts believe that this influx of properties is a result of lenders clearing their books instead of incurring a wave of bad loans. According to data released February 12 from RealtyTrac, the number of homes repossessed by banks in Los Angeles County grew to nearly three times as many from December 2014.
A major factor in this push is the Homeowners Bill of Rights, a year-old protection for California home owners that prolongs the foreclosure process. The number of notices of default, which is the first step in the foreclosure process, has remained roughly around the same level for the past six months.
This is good news to all home buyers as the lower amount of foreclosed properties on the market will help to increase area property values overall.
“Heading into spring, it will be interesting to see whether price appreciation and other factors will finally release a lot of the pent-up supply of homes out there,”said Andrew LePage, data analyst for CoreLogic DataQuick. “More owners have gained enough equity to sell and buy another home, and more will be satisfied with how much their homes can fetch.”
This shift will help to bring stability back to the market, something that many luxury and high-end buyers have been experiencing for the past year. In fact, coastal cities saw the highest yielded real estate prices in 2014, and as the 2015 housing market is expected to see less intense home price gains, it’s sure to be the year of balance and stability across the board.
Santa Monica Housing Market Update
One market that saw pretty stable home value increases in 2014 is Santa Monica where the average home cost around the same throughout much of the year with little fluctuation until December. According to Altos Research, a California-based real estate analytics company, the median single-family home value was reported to be at $3,598,150 as of February 20, which is a significant increase from the end of November 2014 when it was at about $2.85 million.
The demand for homes in Santa Monica has similarly remained strong. Altos uses a unique figure called the Market Action Index to determine whether conditions are trending in favor of home buyers or sellers using a scale that values 30 as neutral. After a few weeks of decreasing values, the index was posted at 44.04 showing a strong lean toward sellers. The index has been in favor of sellers for the past 12 months, which proves that this market has remained in demand by buyers.
There are about 37 properties available in Santa Monica of which are staying on the market for an average of 91 days
If you’re interested in learning more about luxury properties in Santa Monica, give us a call today. Our experienced team of agents are here to assist you in finding the perfect home.
Check out these available luxury homes in Santa Monica between $3.5 million and $4.5 million
$3,700,000 : 201 OCEAN Avenue #409P, Santa Monica3 beds, 3 baths
$4,295,000 : 130 FOXTAIL Drive, Santa Monica4 beds, 3 baths
$3,650,000 : 536 E RUSTIC Road, Santa Monica4 beds, 3 baths
$3,900,000 : 823 Wilson Place, Santa Monica6 beds, 4 baths
$3,900,000 : 823 Wilson Place, Santa Monica0 beds, 0 bath
See all City of Santa Monica Luxury Homes For Sale.
(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.