(click chart for more detail)
This chart reveals how some of the upper market has been effected by the credit crunch, the holiday seasonal lull, and the pall that has fallen over the economy.
Sales volume in Sunset Strip-Hollywood Hills West, West Hollywood Vicinity and Beverly Center-Miracle Mile (MLS Areas 3, 10 and 19) was nearly consistent from April 2006 through September 2007 -- about 65 homes selling on average per month. (The average sale price in these areas ranges from approximately $800,000 to $10+ million, with most sales in the $1 - $2 million range.)
In October 2007, there was a cliff-like drop-off in activity, where in a single month sales volume fell from 62 units to 37 units -- a 40% decline. A further plummet occurred in January 2008, when only 27 units closed. As winter came on, the local real estate market went into the deep freeze. In many markets, this January had the lowest number of unit sales in twenty years.
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