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The national trend of slower volume but consistent or slowly rising prices is now including Los Angeles. The market is showing that smart priced homes are moving, but many who list are being aggressive on pricing. Another trend is that homes are going under contract but languishing as the closing is contingent on the buyers previous home selling.

With the high cost of entry for first time homebuyers, this is a trend to watch as the velocity of the market is slowed by the inability for starter homes to be priced within reason for new homebuyers.

Such was the housing market at the end of 2006: Although Los Angeles County’s median home price rose 6.5% from the previous year to reach a record $522,000 in December, the number of sales fell 12.9%.

“What we’re seeing is a market that is re-balancing itself after the surge we had,” said John Karevoll, chief analyst for DataQuick Information Systems, the La Jolla research firm that compiles monthly numbers. “The question, as we come off the top, is how far off the top we’re likely to come.”

As real estate agents like to say, homes that are selling these days are those that are “priced right” — at or slightly below the prevailing market rate. That means there can still be competition for certain houses in certain neighborhoods — as Brennan found.

Meanwhile, the majority of houses sit. The average days on the market for existing homes in L.A. County rose 5% from November to December to 104 days, according to multiple-listing service figures compiled by brokerage ZipRealty Inc. In the same period, the number of homes on the market declined 14% to 32,363. via  Los Angeles Times.

Related posts:

1. Home Sales Down For 2006 by 8.4% - Median Price Up 1.1%
2. Baltimore Washington DC Region Sees 22 Percent Decline in Home Sales
3. Northern Texas Sees Pre-owned Sales Drop - Median Prices Rise
4. Scary Numbers - Only 11 Percent of Los Angeles Can Afford to Buy a Home
5. April 2007 Existing Home Sales Fall 2.6 Percent