So, the answer for right now is that the real estate market is soft. Home prices in Redondo Beach were stabilizing earlier this year until the buyer tax credits ended. We believe that until the inventory over hang, including the shadow foreclosure inventory held by the banks is fully worked through, there is little chance for price increases. If anything, home prices may trend down for the foreseeable future. (If you are buying and will be in the home for 5-7 years, this should not affect you.) For those who want to sell a home, information is key to a successful sale.
Most economists predict that once home prices stabilize, increases will be in the 3-5% range per year. The most optimistic outlook for stabilization is second half of 2012. The most pessimistic, well you don't want to know that, but the alternative perspective is late 2014. The conclusion is that the current market conditions will prevail for 2-4 years or until the foreclosure crisis is fully resolved. If you need to sell now, you also need the right stategy.
Our tip for home owners planning to sell anytime soon in Redondo Beach is to make sure you have all the data and that you price your home slightly below the current comps in order to sell now. The alternative is chasing the market down and netting less when you sell your home. We see this happen all too often and frequently against the advice of very experienced real estate agents. In the future, the real estate news may be more positive, but hopefully you are reading this blog post because you want "straight talk on real estate" and not smoke and mirrors.
How To Price Your Home to Sell Now in Today's Market
While the average days on market (DOM) for homes for sale in many Redondo Beach neighborhoods may be trending towards the high 90's, we have seen some real estate agents and many REO listing agents sell their home listings in ten days or less, often with multiple offers and often above the MLS listing price. This holds true whether the property for sale is in North Redondo Beach (90278), South Redondo Beach, (90277), a condo, townhouse, or single family detached home. The selling strategy works the same.
Here's the information you'll need to price your home to sell in ten days or less. While you can research most of this yourself, realistically you will need a real estate agent to pull some of it together for you. These tips relate to pricing your home to sell now and are not offered as a substitute for the work of a licensed real estate appraiser.
1) Home Price per square foot of recent closed sales in your neighborhood - all property types.
2) Home Price per square foot of homes currently in escrow (MLS status: pending/backup).
3) Home Price per square foot of current active listings in the MLS in your neighborhood.
4) Recent sales price of the most similar homes to yours for the last 6 months. What you really want here is the MLS printout from a real estate agent for the comparable homes. The reason you'll need the MLS printout from a real estate agent is because you want to see if there were any seller concessions (which affect the selling price), the type of financing used to buy (will be covered in a future blog post) and other pertinent information to the sale.
5) Average and median sales prices for homes sold or for sale in the above categories.
Once you have the information indicated above, you or your real estate agent should calculate the absorption rate for homes for sale similar to yours. In other words, if there are 2 similar homes sold per month and there are 10 similar properties on the market, there is what real estate agents consider to be 10 months of inventory and the absorption rate is 2 homes per month.
That part of the exercise may have felt good, here's the hard part in putting a price on your home. What didn't you like about it when you bought and what needs to be fixed? Examples would be busy street; original roof needs replacing; high HOA dues (condos and townhomes); non permitted additions; small family room, etc. Items that are not fixable, such as a small room will definitely affect the sales price of your home more than repairs or updates that can be made.
Both parts of this exercise are highly subjective as to home prices and there are no absolutes. An experienced real estate agent can help you determine how much to add or subtract to what your home may sell for based on compensating factors.
Lastly, you should review the price reduction history of homes currently for sale, recently sold, and currently active. Again, you may need the help of a real estate agent to put this information together.
If you or your agent do this exercise diligently, you may notice some trends such as:
- many homes have only sold after price (multiple) price reductions.
- in a soft market, the price per sq ft for pending/backing MLS listings is often less than the sold price per sq ft.
- there are fewer homes going into escrow than are coming on the market.
- after reductions, homes are selling for 1-3% below the last MLS list price.
- homes priced below the market may sell for above the MLS list price and in fewer days.
We'll be continuing our tips for home owners who may want to sell their home in Redondo Beach in future blog posts and well as providing other tips for home sellers and buyers. Remember, whether you want to buy or sell a home in Redondo Beach, our "Market Snapshot" report will provide a lot of the information we have suggested you gather. Click here to get started on gathering home pricing info and home values.
If you want to check out homes currently available for sale in the Redondo Beach MLS, following are some of the most popular Redondo Beach homes searches we've previously published on this site:
Redondo Beach Condos Townhomes for Sale MLS Listings
Condos - Townhomes for sale less than $600K North and South Redondo Beach
Condos - Townhomes for sale $600K-$800K North and South Redondo Beach
Condos - Townhomes find homes for sale $800K-$1M MLS Listings
Condos - Townhomes find homes for sale over $1,000,000 MLS Listings
Find 3 Bedroom Townhomes for sale MLS Listings
Find 4 Bedroom Townhomes for sale MLS Listings
Condos and Townhomes in North Redondo Beach 90278
Condos and Townhomes in South Redondo Beach 90277
Redondo Beach Single Family Home MLS Listings
Find Redondo Beach Single Family Homes for sale less than $600K
Find Redondo Beach Single Family Homes for sale $600K-800K
Find Redondo Beach Single Family Homes for sale $800K-$1M
Find Redondo Beach Single Family Homes for sale over $1,000,000
Find Redondo Beach Single Family Homes for sale MLS Listings 90278
Find Redondo Beach Single Family Homes for sale MLS Listings 90277
Whether you want to buy or sell a home in Redondo Beach, these MLS searches should provide a good starting point. Remember that you can modify your search results as well. Scroll through previous blog posts to find other pre-set home searches, choose from the home searches to the right of this screen, or search the entire South Bay MLS here.
Popular MLS Searches - Find Homes for Sale in North and South Redondo Beach
90278 Redondo Beach Condo Townhouse less than $600,000 MLS Listings
90278 Redondo Beach Condo Townhouse $600,000-$800,000 MLS Listings
90278 Redondo Beach Condo Townhouse over $800,000 MLS Listings
90278 Redondo Beach Single Family Residence MLS Listings
90278 Redondo Beach REO Foreclosure Listings
90278 Redondo Beach Short Sale MLS Listings
Find South Redondo Beach 90277 Condos Townhouses MLS Listings less than $600,000
Find South Redondo Beach 90277 Condos Townhouses MLS Listings $600,000-800,000
Find Homes 90277 South Redondo Beach Condos Townhouses over $800,000
Find South Redondo Beach 90277 Single Family Homes for Sale
90277 South Redondo Beach REOs Foreclosures Bank Owned
90277 South Redondo Beach Short Sale Homes for sale MLS Listings
For further information, questions, or help in buying or selling a condominium, townhouse, single family detached home or to buy income property in Redondo Beach, call Ellis Posner (dre # 01416970) at 310 975 5139 or email firstname.lastname@example.org.