As foreclosure flood ebbs, listing prices are flat for fifth week in a row

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The lull continues: Median listing prices in Los Angeles County were flat for the fifth week in a row, and inventory of for-sale homes and condos dipped slightly, according to Housing Tracker’s weekly analysis of MLS listings.

Numbers: Median listing price is unchanged at $399,000, a drop of 22.5% over the past year, and inventory dips 400 units to 40,137, a decline of 13.2% over the past year.

Two cents:

The trend that most likely explains flat pricing in a declining market: The flood of cheap foreclosed houses coming onto the market has slowed dramatically, according to several Realtors who specialize in selling bank-owned houses. One possible factor is a new state law that draws out the foreclosure process, but it’s not clear that the delays from that law have yet hit the market. Expect more slowdowns for several reasons, including Countrywide’s partial foreclosure freeze as part of a larger loan workout program and IndyMac’s new workout efforts.

Alternatively, you could argue that flat pricing means the market is no longer declining, though I don’t yet buy that argument. Those would be your two cents, not mine.

Date Median listing price Inventory

4/06 $579,666 27,251
4/07 $545,000 35,489
5/07 $545,000 38,297
6/07 $540,000 40,766 (up 20.4% y/y)
7/07 $535,000 42,685 (up 14.5% y/y)
8/07 $529,000 44,483 (up 13.6% y/y)
9/07 $520,000 46,414 (up 16.9% y/y)
10/07 $510,000 46,603 (up 15.6% y/y)
11/07 $499,900 46,503 (up 19.0% y/y)
12/07 $495,000 (down 10.0% y/y) 43,174 (up 28.2% y/y)
1/08 $479,900 (down 12.6%) 40,850 (up 33.3% y/y)
2/08 $475,000 (down 13.5%) 43,625 (up 38.3%)
3/08 $464,900 (down 15.5%) 42,098 (up 31.4%)
4/08 $450,000 (down 17.4%) 42,430 (up 16.7%)
5/08 $449,900 (down 17.4%) 42,532 (up 11.1%)
6/08 $440,000 (down 18.5%) 42,398 (up 4.0%)
7/08 $425,000 (down 20.6%) 44,636 (up 4.6%)
8/08 $410,000 (down 22.3%) 42,279 (down 5.1%)
9/2/08 $400,000 (down 23.8%) 42,081 (down 8.6%)
9/8/08 $399,999 (down 23.1%) 41,803 (down 9.9%)
9/15/08 $399,900 (down 23.1%) 42,553 (down 7.9%)
9/22/08 $399,000 (down 23.1%) 40,565 (down 12.3%)
9/29/08 $399,000 (down 23.1%) 40,539 (down 12.4%)
10/6/08 $399,000 (down 22.5%) 40,137 (down 13.2%)

--Peter Viles

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