Tracking housing inventory in Los Angeles' best neighborhoods

One of the conditions putting the most downward pressure on home prices in much of Southern California has been the high level of inventory. When too many homes are on the market, sellers must lower prices to sell get them sold.

Not surprisingly, there is a huge variance between different areas in the housing inventory on the market. That also means there is a huge difference in the downward pressure on home prices going forward in the next few months. Furthermore, if you combine unsold housing inventory figures with other factors, you can come up with a reasonable guess at which areas are nearer the bottom and closer to recovery -- and which areas will likely still see more of a drop in home prices.

To that end, looking only at single-family homes and excluding condos, here are the 12 zip codes in prime Los Angeles with the lowest inventory:

1. 90403 -- Santa Monica (Wilshire to Montana) -- 3 months of inventory
2. 90402 -- Santa Monica (N. of Montana) -- 4 months
3. 90404 -- Santa Monica -- 4 months
4. 91607 -- Valley Village -- 4 months
5. 90064 -- Cheviot Hills/Rancho Park -- 5 months
6. 90036 -- Miracle Mile -- 5 months
7. 90025 -- Sawtelle/West L.A. -- 5 months
8. 90038 -- Hollywood -- 6 months
9. 91316 -- Encino -- 6 months
10. 90291 -- Venice -- 6 months
11. 90035 -- S. Robertson/S. Carthay -- 6 months
12. 91423 -- Sherman Oaks -- 6 months

And on the negative side, here are the 11 zip codes with the highest level of inventory among single-family homes:

1. 90265 -- Malibu -- 33 months of inventory
2. 90069 -- West Hollywood -- 30 months
3. 90211 -- Beverly Hills (SE) -- 14 months
4. 90210 -- Beverly Hills -- 13 months
5. 90401 -- Santa Monica -- 12 months
6. 91602 -- Toluca Lake -- 12 months
7. 90046 -- Hollywood Hills West -- 11 months
8. 91436 -- Encino -- 11 months
9. 90049 -- Brentwood -- 11 months
10. 90077 -- Bel Air/Holmby Hills -- 10 months
11. 90212 -- Beverly Hills (SW) -- 10 months

These are figures based on sales through the end of September and for inventory through Oct. 9.

The prime areas of Santa Monica remain in the best shape. Malibu and West Hollywood remain in the most difficult position with prices just ripe for a tumble.

Interestingly, some areas so significant increases or decreases on the list.

Big increases in inventory: Westwood (25%), Toluca Lake (21%), Hollywood Hills East (18%). Big drops in inventory: Silver Lake (-24%), Valley Village (-22%), Sherman Oaks (-20% in 91403, -13% in 91423).