Saturday, August 20, 2016

Redondo Beach Real Estate Market Shift


Well Redondo Beach, we've come a long way and I don't mean just since the city was founded in 1892.

Have you noticed all the "For Sale" signs and open houses recently? Yeah, me too. The market has shifted again and it happened quite abruptly.

Earlier in 2016, the inventory was extremely tight and it was not uncommon to see around 30 properties listed in North Redondo Beach at any given point. Because the market is driven by supply and demand this pushed prices up rather quickly. If you look back to some of the posts on this blog you'll see that starting in mid July we were noting increases in inventory. Then, in what seemed like the blink of an eye, inventory jumped from the 30-40 active listings at any given point up to 65-75 which is where we are at today. Actually as of this blog post, there are 79 active MLS listing in 90278 North Redondo Beach. While technically this is still a "Seller's Market", it doesn't necessarily feel like it. While the numbers are different, the same story has been unfolding in South Redondo Beach, Hermosa Beach, and Manhattan Beach CA. Here's why.

Year to date, there have been 311 closed sales in North Redondo Beach. That's an average of around 41 properties sold per month so far. So with 79 properties with "For Sale" signs in the yard, that's almost 2 months of inventory based on the closed sales calculation. Compared to less than 1 month of inventory earlier in the year, it is emboldening to many buyers. So, after a slow start we're now just under last year's pace of 44 properties sold per month on average.

North Redondo Beach Market Trends

Of the properties on the market, the average DOM is 37 and the median is 28 days. That means there are 38 properties on the market over 30 days which is more listings than we saw in total at various points Q1-2 2016. What should be of more concern to some sellers is that 33 properties currently listed have had price reductions. Totally coincidentally, there have been exactly 79 sales closed since July 1st and of those 22 sold under the asking price.

If you can decipher the trends in the chart (lagging current data through June), it is apparent that the median sales price is down while the list price is up and the list to sales is down.

So, what's going on and how does this all play out?

Tuesday, August 16, 2016

Does the Presidential Election Affect Redondo Beach Real Estate?




Does the Presidential Election Affect Redondo Beach Real Estate? Well, yes and no depending on who you ask.

The question I've been getting more frequently over the past few weeks is what effect the coming US Presidential Election may have on Real Estate. This has almost supplanted "how long has it been on the market" as to the number one question at open houses these days. Really. So let's take a look at a few data points and what is going on. About the election that is.

Let me start off by saying that this blog post is not based on my political views and is not meant to support any party. There is no doubt that election years do have an impact on the housing market.  All you have to do is go back in history and you will see a very clear pattern during election years.  This year will be no different. While I am not saying that there is going to be a dramatic shift, I do feel that as we approach November, consumers that are considering buying or selling might wait until they know who has been elected.

More important though, are the underlying data points that drive Real Estate ups and downs.
  • Housing is fueled by demand– the demand for housing right now is so strong because we have never made up for the lack of new construction we have had over the past seven years. This will help to bolster the housing industry. 
  • People need a place to live – it doesn’t matter who is in office - everyone needs a home, a place to live and call their own. Homeownership rates have risen showing that people want to own again. There is much speculation that the only reason the homeownership rate is not even higher is due to the fact the people are still repairing the credit that was damaged during our housing crash.
  • Employment – both candidates have talked very openly about their plans to continue to improve the job market, jobs are what are needed to keep our housing industry strong.
  • New Home Construction – this is the area I watch the closest to answer many of my questions about the housing market. In the latest Census Bureau Report sales of newly constructed homes soared to its highest annual rate in eight years in June.  This clearly shows that the demand for homes is strong and the desire for these homes is at an all-time high. If you don't believe me just drive around Redondo, Hermosa or Manhattan Beach CA and take note of all the homes being built.

Friday, August 12, 2016

Redondo Beach First Time Home Buyer Tips


I do a lot of Open Houses in Redondo Beach and elsewhere. In fact, if you are visiting this website it may be because you met me at one of those opens. So I get to interact with a many buyers and not just my own Buyer clients. While many things haven't changed, there is no doubt that Buyer behavior is much different now that it was even 5 years ago.

Technology, mobile apps, and sites like Zillow and Trulia have massively impacted the house hunt. Some of the changes are for the better while others are not necessarily to the benefit of the home buying public.

Here's the most common mistakes I see Buyers making in the current market.
  • Poor choice of Lender
  • Only going to Open Houses
  • Not understanding Negotiation
  • Mistaking "Price" and "Pricing"
  • Over emphasis on New Listings
  • Making offers through Listing Agents
So, in no particular order, let me take a little more of a deep dive into these bullet points.

OPEN HOUSES

No doubt Open Houses are great and much more popular these days then just a few years ago. But if you are just limiting yourself to what is open on any given weekend, you may be missing out on your dream home or at a minimum some better options that you should consider.

To start with, not every Seller wants to have an Open House. Why is that? There may be any number of issues such as pets, young children, valuables, privacy or just that they don't want a parade of all the nosy neighbors coming through their home. Also, for properties that have been on the market for 30 days or more (yes I know many of you don't believe that is possible) the Sellers may have simply had enough disruptions to their weekends and prefer to stay at home and watch Football. Particularly now that we have a team in LA.

Wednesday, August 10, 2016

Staged Homes in Redondo Beach CA Sell for Higher Prices!

Staged Homes Sell for Higher Prices

We've all heard that a "picture is worth a thousand words" and nowhere does that ring truer than in marketing you home for sale. Most buyers will first view properties they are interested on the Internet or via some mobile device and after a few pictures they know if they are interested or not. And you have just a few seconds, maybe 6, before most buyers will decide to move on to the next listing or not.

I always use professional photographers on all my listings and am very surprised to still see other agents taking photos on the phones and posting those shots to the MLS. Even on multi million dollar properties. Really.

I'm also surprised by how many homes just aren't prepared or are vacant. I can share with you for a fact that staged homes sell for higher prices. And I'm not just talking about staging vacant properties. I currently have a few listings that are still being lived in but we've staged them anyway.

And with my current FREE STAGING OFFER for my Seller clients there simply isn't any valid reason not to show your home off to its best advantage. After all, if you were going on a job interview you probably wouldn't

So since a picture is worth a thousand words, here's some examples. Please note the "non staged" shots are from when the homes were listed with a different agent.

Sunday, August 7, 2016

Golden Hills Houses for Sale | Prices UP on New Construction and Resales



There doesn't seem to be any end in sight for demand for homes in the Redondo Beach Golden Hills for the same reasons I've written about previously: great location, schools and lifestyle. Many Golden Hills homes are located further West, i.e, closer to the Beach, than properties in East Manhattan Beach and the entry price point is much more attractive even at the current price points.

Here's two that caught my eye this week.

First up is a Teles listing at 1625 Morgan Lane (video above). This property is a unique non reverse floorplan Tall & Skinny that has been remodeled and is listed for $995,000. Because all three bedrooms are upstairs and it features a great location on the Hermosa Beach border and walkable to Jefferson Elementary I expect it to be in escrow soon.

"Picture Perfect family home in the desirable Golden Hills neighborhood. All 3 bedrooms on one level upstairs, with an inviting open plan kitchen, dining and living room on the first floor. The living room flows out to a quaint, private patio, perfect for entertaining. Two blocks from the award winning Jefferson Elementary School, and steps to the Hermosa Border. Quiet limited-access street with very little traffic, perfect for the kids to play. Enjoy block parties and movies in the park with the close-knit neighbors. Upgraded kitchen with granite counter tops and stainless appliances. Spacious master bedroom with cathedral ceilings, an en-suite bath, and tons of closet space. 2 car attached garage. What more could you ask for? Your dream home awaits."

The other one which caught my attention is quite possibly the nicest Tall and Skinny I have ever seen in Golden Hills and is just finished new construction.

Friday, August 5, 2016

North Redondo Beach Real Estate | July 2016 Sales


Sales in North Redondo Beach 90278 clipped along at a very healthy pace during July with 50 properties closing escrow.* As of this blog post there are another 60 in escrow and a staggering 74 offered for sale. So we are certainly seeing a balancing of the market with more homes for buyers to choose from.

With the added inventory, there is no doubt that there is a softening and that not every property is going to sell with multiple offers the first weekend. (Unless I'm your listing agent of course.)

Let's take a deeper dive into what's going on looking at certain neighborhoods, price points, and property types.

REDONDO BEACH GOLDEN HILLS

MLS Area 154, Golden Hills, still remains one of the most sought after neighborhoods in the Beach Cities. While admittedly not everyone wants to live in a Tall & Skinny SFR with virtually no back yard, the demand is still strong due to location, preference for SFRs, and the fact that many of these homes offer city or mountain views.

Right now you can expect to pay at least $1M for a nice standard 3 bedroom, 2.5 bath reverse floorplan house with updates. If it is original or the 2 bath model expect to pay less but if it is newer, has a few or on one of the streets further west you will pay more. Here's what sold during July.

Monday, August 1, 2016

North Redondo Beach Homes for Sale


North Redondo Beach 90278 has been one of the hottest zip codes in LA County over the last 18 months and new listings are in very high demand. What you will find is great value for your money with easy freeway access, proximity to world class beaches, shopping, restaurants, movie theaters, great schools and lots more.

Entry level for 2 bedroom townhomes and condos is in the mid $500's with luxury high end single family residences topping out at around $1.6-1.7M. The Golden Hills neighborhood is further west than part of East Manhattan Beach and from many blocks is an easy walk or bike ride to the Strand.

SEARCH THE MLS

Here's all the listings available today. Every time you return to this page the list will automatically update.

Saturday, July 23, 2016

Luxury Redondo Beach Real Estate for Sale

2505 Vail Ave Redondo Beach CA

My buyer clients just closed on 2505 Vail Ave in North Redondo Beach (pictured above) for $1,330,000. This 2160 SqFt 4 bedroom SFR was recently remodeled with amazing finish work and taste. And a unique floor plan. Plus a look and feel that is more common in Manhattan Beach. And a backyard to die for.

So I was thinking about how common it is to see $1M plus these days in North Redondo Beach. In fact, so far in 2016 as of the date of this blog post there have been 81 closed sales over $1M with the highest price being $1,699,000. That compares to 107 in 2015, 32 in 2014 and only 27 in 2013. So that should be a pretty good indication of where pricing is going in N Redondo which is now a "luxury" market.

So how do I define Luxury Real Estate?

One definition is luxury real estate is often defined as real property that has an appraised value of over $1 million in the United States, yet this varies greatly depending on the location. Another definition of luxury incorporates amenities such as ocean views or waterfront, golf course, community amenities such as pools, etc. None of this applies to North Redondo Beach other than the price point relative to other homes on the market.

When you cross the $1M threshold in N Redondo Beach you should start to see a higher level of finish work, appliances, and other features. And, in general we do.

A few more data points. 

So far this year there have been 271 closed sales in N Redondo Beach so the 81 over $1M which is just about 30%. Of those 41 were over $1.25M. That's still 15% of the deal.



Saturday, July 16, 2016

Redondo Beach Market Trends | Inventory at High Point for 2016



If you have been driving around North Redondo Beach recently and think you are seeing more "For Sale" signs, you are not imagining anything. Inventory is up and there are more listings and they are taking longer to sell.

I've been seeing this trend coming and all I can say is "now that happened".

By "that" I mean the tipping point at which more home owners decide to sell. There have been a lot of fence sitters the past year or so waiting for prices to get $25K higher, or $50K or pick any random number.

Truthfully I had to look twice when I saw the results come up: 65 active listings in 90278 as of right now. There were months when all we saw was around 30. What concerns me is that there were only 39 sales in June and right now there are 64 properties in escrow. I like to see some of these numbers more in balance. But there's no doubt that as prices have continued to rise, buyers have just said "no". Well maybe "no thank you" or something I can't write here.

By comparison, last year in June of 2015, there were 58 closed escrows in 90278. So with interest rates at the same or even lower level, there's no way around it, sales are soft.

It's all about price, well the seller's price anyway, so let's look at a few examples.

Saturday, July 2, 2016

Redondo Beach Zillow "Zestimates": How Accurate Are They?



Whether you are buying or selling or just curious, chances are that you have looked up a Redondo Beach home on Zillow and looked at the "Zestimate" which is the Zillow site unseen estimate of the home's value. In the real estate business we refer to these as "AVMs" meaning automated valuation models. Basically, an algorithm that calculates value based on attributes like home, age, size, lot size recent sales etc. It does not take into account variables such as upgrades and market demand. As a result any AVM from any source can miss the mark by a wide margin. In fact for the Los Angeles area, Zillow indicates that their median error is 4.6%, 89.3% of homes are within 20% of the sales price, 75.8% of homes are within 10% of the sales price and 53.3% of homes are within 5% of the sales price. Wow. I'll let you calculate the implications of all that on your own but at a minimum we are looking at what can easily be tens of thousands of dollars based on current Redondo Beach sales prices.

So let's take a look at some actual properties for sale, recently sold, and in escrow in North Redondo Beach CA.

Active Listings

1714 Ruxton Ln # A, Redondo Beach 90278: Listed for $799,900, Zillow Zestimate $809,596. My opinion, priced about right and Zillow about right. Probably unknown to Zillow is that east of Inglewood Ave and close to the train tracks might be a drag on value or desirability. But certainly well within 1-3% either up or down.

2111 Huntington Ln # A, Redondo Beach 90278: Initially listed for $1,125,000 then reduced to $1,089,000. Zillow's Zestimate is $1,176,506 so even at the initial list price was priced below Zillow. At the current price it is less than $400 SqFt. So why hasn't it sold? My opinion a) I have seen better versions of a similar floor plan and b) when a property is larger than similar ones you may get price per SqFt distortion lowering the AVM calculation. Either way, this one should sell below the Zestimate and possibly by over 8% based on the current list price. My guess is we may be closer to 10% by the time everything is said and done.

1600 Speyer Ln, Redondo Beach 90278: Listed for $1,049,000. Zestimate is $1,071,305. I think Zillow is low on this one and it may very well get bid up substantially. It would not be unexpected to see this go 15% over list price or more. A lot more. Why? House and lot both larger than others in the neighborhood and very far west, almost to the Hermosa Beach border.