Real estate prices in the Palisades have continued a steady and much stronger increase than could reasonably have been expected.

As we begin the year 2012, the number of homes available for sale in Pacific Palisades is quite low.  There are only 70 homes on the market, which is 22 percent less supply than at the beginning of last year. 

The answers to these questions have been relatively easy to give for the last year or so. Today, however, this is not at all an easy subject to fully understand.

Last year at this time, there was approximately a four-month level of inventory. When the inventory level dips below six months, it is generally considered to be a “seller’s market”. 

As most people must know by now, the housing recovery has been much greater than anticipated in 2012. While nationwide prices have increased by about 12% in the past year, in Pacific Palisades the median sale price and average price per square foot are up more than 17%.

In the past few months, the stage may have been set for a possible nationwide real estate recovery. The Federal Reserve has determined to do everything possible to maintain 60-year low levels of interest rates for the next two years.