The total inventory of single family homes for sale in the cities listed above is down approx. 44% compared to the prior year, the sales activity is up 15%, and there is less than 2 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes. Average price per sq. ft. for homes sold in the 1st quarter 2012 for the cities listed above is up approx. 5% overall compared to the 1st quarter of 2012.

FINANCING   (See our web blog at http://mmegowan.activerain.com/ for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 3.4%, unchanged from the end of 2012. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 3.625% , and 15 year loans are at approx. 3.0%.Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $625,500) have an average rate of approx. 3.9%. All of these rates are still near record lows.  The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR  rates as of 1/17/2013, and assume a 20% down payment, no points and a FICO score of at least 740.