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.

Friday, June 24, 2016

Redondo Beach Closing Costs: How Much Money Do I Need?

I work with many first time home buyers in Redondo Beach CA and somewhere along the way, usually as we are getting ready to make an offer I get the closing costs question. It is not easily answered because there are a lot of moving parts as you will see below. As a ballpark guess it can be 1-2% although I have seen final settlement statements for buyers both higher and lower.

It's really a very good idea to cover this topic sooner rather than later because some homebuyers are shocked when they discover that buying a home is much more than purchase price and down payment. In plain English that means that in addition to your downpayment of 20% (or however much you are putting down) there are additional fees and expenses that you have to pay at closing before you get the keys.

While a buyer doesn't pay sales tax per se (you do pay property tax) on a single-family residence or condo as on other things we buy including cars etc, a buyer does incur additional fees to get the loan and for processing the paperwork to buy a home. 

Here's a general breakdown of recurring and non-recurring fees. Comments below are relative to LA County in general. Don't worry if you don't understand everything below because I can explain everything in detail if need be. Please note that in Southern CA we usually use escrow companies while in Northern CA it is more common for the Title Co to also be the escrow holder.

Non-Recurring Closing Costs. Fees that are paid one time only as an expense of closing a transaction.

Title Policy: Sellers typically will pay for the buyer title insurance but the buyer pays for the lender insurance.

Escrow  Fees: Escrow companies charge $$2-3 per thousand as a line item. Some also charge a base fee.
Appraisal: Typically the lender will charge the buyer's credit card for an appraisal. Often this appears on a closing statement as "POC" meaning paid outside of closing.

Credit Report: lenders may charge around $35 or nothing.

Notary: if you need a mobile notary at closing that can run $150 or more but if it is a regular notarization less than $50.

Tuesday, June 21, 2016

Teles Properties New Listing North Redondo Beach CA

Rarely does a property as expansive as 2209 Blossom become available in North Redondo. The resume of this fantastic, 5 bed, 3.5 bath, 3,046 sq ft, completely detached home is vast, even including air conditioning and solar panels! Beautiful crown moulding and cherry stained oak hardwood floors sweep through the entire downstairs and all common areas of the home. On the ground floor lies a formal dining room perfect for 5-course gourmet dinners and formal living room including the first of three fireplaces. Eat-in kitchen with pantry, dual ovens, dual sinks, and open great room floor plan lead to a huge family room with the 2nd of three fireplaces and french doors that open to a large, grassy, and lush private backyard and patio. Upstairs awaits five large bedrooms all with vaulted ceilings and a separate laundry. Space abounds in the huge master suite with en-suite master bath, jetted tub, dual sinks, standing shower and large walk-in closet. Four more large bedrooms await including one bedroom with en-suite bath. Two car attached garage with two additional storage areas leave nothing wanting in this tremendous home. Located in the award winning Redondo Beach school district just minutes from beaches, shopping, restaurants and more.

Five Bedrooms, 4 bathrooms and over 3000 SqFt with no shared driveway! $1,199,000. 2209 Blossom Ln Unit 2, Redondo Beach CA 90278.

Photo Gallery:

Saturday, June 18, 2016

New Construction Homes for Sale Redondo Beach CA

There's nothing quite like being the first owner of a new home. If you are thinking of buying new construction in Redondo Beach CA you are in luck because there's a lot of great properties to choose from. You will find attached and detached 2 on a lot townhomes and SFRs in both North and South Redondo Beach CA.

Expect to spend at least $1M for a townhome and up to $3M for an ocean view mansion with detached 2 on a lots coming out at around $1.4M in N Redondo and $1.5-$1.7M in South Redondo Beach.

Trends are:
  • Contemporary Exteriors
  • Farmhouse Modern
  • Open Interiors
  • Lighter Finishes
  • Higher End Appliances
Check out the Gallery to get an idea of what I am referring to:

Wednesday, June 15, 2016

Remodeled Investor Flip in Redondo Beach CA

I just put this great remodeled North Redondo Beach Single Family Residence into escrow for my buyer clients. Listed at $1.2M this was a fierce multiple offer situation and yes, the final price was substantially over the asking price. In fact, there was so much interest in this property that the listing agent had to call for reinforcements from his office when he held it open! My clients loved the large west facing back yard which will just be great for entertaining and their kids.

Four bedrooms, 2.5 baths, 2160 SqFt with a west facing backyard on a 5416 SqFt lot.

Here's the MLS description:

"With an extensively re-imagined new open floor plan, this updated home is the epitome of South Bay living at its best. It?s newly finished kitchen and baths feature wide plank flooring, top of the line appliances and finishes, and a sense of calm that can only be achieved within a balanced design done by a true professional. The home flows seamlessly into the spacious backyard making indoor/outdoor living and entertaining a complete breeze. Further upgrades during the recent renovation include a new roof, upgraded engineering, bolted foundation, and increase to 200-amp electrical wiring. The home is located just 4 blocks from Lincoln Elementary School and Anderson Park giving you access to top rated schools and safe play spaces."

Thursday, June 9, 2016

Redondo Beach Housing: More Homes on the Market

Not unexpectedly, as prices have gone up we are now starting to see the inevitable rise in inventory as sellers see more potential equity when they cash out. Not enough so as to tilt things in favor of buyers, but just enough to offer a few options and possibly relieve some pricing pressure.

Meanwhile hot listings continue to get multiple offers over the asking price while properties that aren't desirable or overpriced will sit on the market.

Last week there were actually over 50 listings in North Redondo Beach for  few days. As of this writing we are back in the mid 40's which is still higher than the 30 odd we have been seeing.

The new normal for 3 on a lot townhomes is around $800K with newer ones, end units, 4 bedroom units, further west locations all being listed for higher prices.

For nicer detached 2 on a lots expect to be around $1.1M plus or minus with new construction (pictured above) at $1.3M and higher. If you are in the market for the new units you most likely will have to tie one up before completion as they often do not hit the MLS until they go in as sold or in pending with zero days on market.

Older units and attached units can still be picked up for around $1M. An example would be 2203 Harriman lane which sold off market for $1,010,000 or 2120 Clark Ln which sold for $955K.

If you are looking in the Redondo Beach Golden Hills, the starting price for newer Tall and Skinny SFRs is $1M and then up from there. A good example would be 1753 Axenty Way (pictured below). It is the prototypical 1881 SqFt reverse floorplan built in 1999, listed for $1,070,000 and described in the MLS as:

Saturday, June 4, 2016

North Redondo Beach May 2016: Sales Remain Strong

May came in as another very strong month for North Redondo Beach Real Estate Sales with 51 closed escrows remaining on about the same pace as April which was the best month with 53 sales. So after a rather slow start to the year we are back on a very strong pace right now.

But a word of caution for sellers: inventory is increasing and we are seeing both price stabilization and even reductions. In fact, as I write this I see that there are 51 active listings (quite a coincidence) of which 36 are "new" in that they have been on the market for less than 30 days. So, if you've been waiting to sell, so have some of your neighbors and you may be in a less competitive, albeit more balanced, market.

I'm also seeing 55 homes in escrow. So all in all things are balanced and if you are a buyer, there is some light at the end of the tunnel.

Here's a few things that jump out at me looking at May sales.
  • Median Price is $880,000 but the average sold price is 952,716 indicating that.....
  • Prices are stabilizing.
  • 15 homes sold were built 2000+ and 4 new construction.
  • Prices ranged from a low of $555K all the up to $1.65M.
  • 19 homes sold for over $1M (37.2%).
  • 29 listings sold in 30 days or less.
  • 39 properties sold at or over the list price which means that.....
  • 12 homes sold at a discount to asking.
  • The longer the listing was on the market, the more likely it sold for less than asking price.

Monday, May 30, 2016

Redondo Beach CA Real Estate for Sale: New Listings

New Listings Redondo Beach CA

If you are a Buyer looking for homes for sale in Redondo Beach CA there may be long stretches during your house hunt that you feel as if there just isn't enough to look at. Or you get involved in bidding wars on the ones you like.

So while it is still a "Seller's Market" in Redondo Beach CA, we have seen a nice flow of new listings the last few weeks. The best ones go into escrow relatively fast with multiple offers over the asking prices. Others will linger and if they are on the market 30 days later most likely the reason is they were overpriced to begin with.

A lot of this is driven by the fact that Redondo Beach offers about 85% of the same amenities as living in Hermosa Beach or Manhattan Beach at less than 50% of the cost. And a lot closer to the Freeways.

Because 90277 and 90278 are so different in many aspects, I sometimes think of Redondo Beach as two cities with one name.

In both zips you will find a mix of Single Family Residences, townhomes, and flat condominiums. South Redondo has a few large condo communities, The Village and Brookside Village but in general the density in North Redondo may be greater.

When you are looking at townhomes remember that from the lender perspective these are condominiums and may carry a higher interest rate than SFRs. Some may be attached to the other units while others are detached and free standing.

Speaking of SFRs, we have traditional single level tract homes on 5000 SqFt lots, Tall & Skinny SFRs, and MacMansions. If you are looking in the Redondo Beach Golden Hills or at attached 3 on a lots, it is very common to find “Reverse Floorplans” meaning the living room and dining room are upstairs with a few bedrooms located downstairs.

Here's the newest listings.