As the first month of 2011 has passed, and although there have not been enough sales to draw any conclusions from, the following is the initial picture:
The number of sales (16) in January was 38% lower than last year at this time, and the median sale prices were 33% lower. Prices per square foot were approximately 12% lower during this first month of 2011. There is a 7% larger inventory of homes available this year. Some indications that the market may be leveling out are that the average days on market is 37% shorter than it was at this time last year (now 86 days). One tangible sign that the market may be approaching its bottoming out level is that at the current rate of sales, there is a 6.5 month inventory of homes available in the Palisades. It has generally been agreed that when the number of months of inventory is above 7 months it has become a buyers market. Where as below 6 months it tends to benefit the sellers.
