Willing the Market to Recovery

I find it very intriguing that there are many listings in the South Bay real estate market that are clearly priced well above current market rates.  This has been the subject of many articles and yet it still fascinates me how frequently it occurs.  In the South Bay region of Los Angeles, the median sales prices of 2009 were fairly consistent with late 2004.  This has been pretty well documented locally and the market consistently reaffirms this point.  Nonetheless, there are numerous examples of listings currently on the market at 2007 pricing when most sub-areas here hit their all-time highs.  Many of these homes have already had downward adjustments and may have second or third rounds of corrections.

A case in point is the strand, home to all of the beachfront properties in Manhattan Beach and Hermosa Beach.  There are currently ten homes listed for sale on the strand and five of them are priced at over $10,000,000.  Considering what has been happening with the financial markets and the fact that only one home has sold on the strand for $10,000,000 or more this entire past decade, it seems quite unrealistic to think that there is now a market at this price point.

So I am left wondering, is it possible to will a market to recovery?  For that matter, is it possible to create a demand when one hasn’t really existed there before and at a time when securing high end financing is challenging at best?

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