A tipping point is the point at which a series of small ineffective changes acquires enough pressure or importance to cause a larger, more significant change.

In this case, to buy property and where the momentum of sales spurred by buyer activity causes sale prices to stabilize and then eventually rise.

Where we are now vs. a year ago: inventory is down, pending sales are way up, and closed sales are up.

Where we are today vs. three years ago: inventory is down slightly and both pending sales and closed sales are down from three years ago.

The headache is gone. The market is not hitting us with a hammer. But the market is not robust either.  The first quarter of 2009 appears to be the bottom of the market as it stands right now. We do not expect any run up in prices in the near future.

The question remains: will we see the market drop again or keep building momentum toward a tipping point?

Our agents are experiencing active open houses and many properties are selling in multiples. More buyers are beginning the process and for the most part sellers have adjusted to what they can expect to net. What is unusual for our current market dynamics is the limited inventory. Markets that are bottoming or have bottomed generally have more properties for sale.

The real anchor on the market remains the same. Financing above $750,000 is still very difficult to obtain and is unavailable to a large segment of our population.

In Orange County only one micro market we study had a lower total dollar sales volume for the same month last year. Half of the markets enjoyed a shorter selling period and the number of transactions were up. Balboa Peninsula, East Bluff / Harbor View and Crystal Cove were the stand out markets.

In LA County we study 34 Micro Markets from Silver Lake – Echo Park to Malibu Beach. All but eight markets were up in total dollar sales volume. In 21 markets properties sold quicker than during the same month of the previous year. Standout markets include Malibu, Venice, and Bel Air / Holmby Hills.

Please take a moment and review our reports and learn more about the current activity in your favorite markets. If you would like more information please visit our website and contact one of our agents.

The Los Angeles March 2010 Micro Market Reports are now available. Please click the links below to download.

March 2010 Los Angeles Micro Market Report Single Family Homes

March 2010 Los Angeles Micro Market Report Condos

Filed under: Micro Market Updates on April 15th, 2010