Condo Prices in Los Angeles Down 40 Percent Since Market Peak

January 13, 2012 (Jeff Alan)

The long downhill slide of condominium prices in Los Angeles and San Francisco are beginning to look more and more like a Charlton Heston disaster movie from the 1970’s while New York continued to be the one shining star as condo prices there increased for the fifth consecutive month according to Standard and Poor’s HouseViews.

Of the five condominium markets covered by the S&P/Case-Shiller Indices in October, only New York posted a gain in monthly condominium prices.

In California, the long slide in condo prices continued in October, with San Francisco suffering a monthly price decline of 2.6 percent, the largest decline of the five condo markets, while Los Angeles saw its prices decline 1.7 percent.

Condo prices in Los Angeles have fallen in 15 of the last 16 months leaving prices in the area 8.2 percent lower than in October 2010, the largest year-over-year price difference of the five markets.

In San Francisco, over those same 16 months, condo prices have fallen 13 times leaving prices 8.0 percent lower than in November of last year.

Condo prices in Los Angeles are now back to levels last seen in mid-2003, and in San Francisco, condo prices have dropped back to early-2002 levels.

The index for Boston fell 1.6 percent from September to october and is 1.9 percent lower than in October of last year. Chicago posted a monthly decline of 2.5 percent and condo prices there are 7.7 percent lower than in October of 2010.

New York was the only market to post a price increase in October, 0.1 percent, and was also the only market to post an annual price gain of 0.5 percent. It was the fifth consecutive month that condo prices have increased in New York.

Condo prices in Los Angeles have declined 40.8 percent since its market peak in October 2006, while San Francisco’s prices have declined 35.6 percent since its peak. Whereas in New York, condo prices have declined only 12.8 percent since the market peaked in February 2006.

Tags: California, condo prices, S&P, Case-Shiller Index, Los Angeles, San Francisco, Boston, Chicago, New York, market prices

Source:
Standard and Poor