National Foreclosures at 28% of Total Sales in Q1....What About Los Angeles?
Nationally, foreclosures represented 28% of sales in the first quarter of 2011, according to the Wall Street Journal. How did our area fare?
As we look at the above table, we notice that only 6% of sold properties were foreclosures during Q1 on the Westside. In a nation where the statistic shows almost 1 out of 3 homes sells in foreclosure, it is important to see that foreclosure sales only represent 1 out of 20 homes sold in Westside Los Angeles communities! While national trends are important indicators, real estate is largely local.
The Westside of LA is considered very desirable and has a much stronger market than much of the nation. With fewer foreclosures, a diverse economy, and a constant stream of new residents to the Southland, our real estate values are much more robust and consequently, our prices have averted the major plunge seen by many in our neighboring areas.
The above analysis of foreclosed sales in LA highlights one important point: The need to read beyond the headlines of the national articles and interpret how they relate to us at the local level...
