North Redondo Beach Condo and Townhouse Market Update

North Redondo Beach Condo and Townhouse Market Update: As of this blog post, the MLS indicates that there are currently 99 condos or townhouses listed for sale in North Redondo Beach.  As we have noted previously, townhouse is not a legal description. Subsequently, all townhouses are technically condos and thus are subject to different financing and insurance requirements than single family houses. (We'll discuss current townhouse financing challenges toward the end of this article.) As always, we've posted some MLS "quick searches" or you can view the entire Redondo Beach MLS to search for homes.

We constantly are queried about the North Redondo Beach "shadow inventory" of properties in the foreclosure process or currently owned by the lenders and not yet listed in the MLS. So, for example while the MLS currently lists 9 bank owned REO foreclosures, and 17 short sales (of which 2 have notices of default (NOD) filed) we can share with you that there are an additional 22 homes total owned by the bans-investors, 27 with NODS filed and 47 set to go to auction. You can learn more about the foreclosure process here.

Here's some other interesting real estate statistics for the condos and townhouses currently listed for sale in the MLS:
  • 26 are detached freestanding homes which are easier to finance
  • 73 are attached units (more difficult to qualify for FHA financing)
  • 45 are in area 151 - North of Artesia Blvd
  • 50 are in area 152 - South of Artesia Blvd
  • 81 are listed as townhouses
Through the end of July 2011, the MLS reports that there have been 135 townhouse and condo sales in North Redondo Beach. The closed MLS townhouse and condo sales indicate that:
  • 50 are in area 151 - North of Artesia Blvd
  • 77 are in area 152 - South of Artesia Blvd
  • 5   bank owned REO foreclosures
  • 20 short sales
  • 42 were detached townhouses
  • 31 townhouses were 4 bedroom or larger
  • 60 townhouses or condos sold for less than $600K
  • 20 townhouses or condos sold were smaller than 1400 sq ft
So, what does this all mean? Well, that depends on whether you are buying or selling Redondo Beach Real Estate. As a seller, you are facing steep competition from both foreclosure sellers and standard sellers. Looking at the data above, you can see that there are about 20 condo - townhouse sales in North Redondo Beach every month. But there are 100 condos and townhouses listed for sale in the MLS. So, do you want to be one of the 20 or one of the 70? It is therefore key to understand the absorption rate for homes similar to yours. In other words, how many similar homes sell, for how much, and how fast? That can only be answered on an individual basis for each property. A good way to get started is our Market Snapshot product or just call 310 975 5139 for specifics regarding your home.

If you are thinking of buying Redondo Beach Real Estate, you probably already know that it is currently a buyer's market. That means that there are more homes for sale than buyers to meet the demand. If you have an agent that is a tough negotiator, townhouses and condos can be purchased for under $300 sq ft. (We have gotten deals for buyer clients this year in the $280 sq ft range.)


It's important to have a strategy and not just be looking for a "deal". (Hint - everyone's looking for a deal.) You may want to buy a foreclosure townhouse under fair market value and fix it up, or may have the time to wait for a short sale to be approved (and most aren't). Your interests may best be served by jumping on new listings or recent price reductions. Here's some MLS "quick searches to find Redondo Beach condos, townhouses and single family homes listed for sale in the MLS.

North Redondo Beach New Construction Townhouses, Condos and Single Family Houses for Sale
North Redondo Beach New MLS Listings - Condos, Townhomes and Single Family Houses for Sale
North Redondo Beach Short Sales - Townhouses, Condos and Single Family Houses listed in the MLS
North Redondo Beach REO Foreclosures - Townhouses, Condos and Single Family Houses listed in the MLS
North Redondo Beach Recent MLS Price Reductions - Townhouses, Condos and Single Family Houses for Sale
North Redondo Beach MLS Listings -  Condos, Townhomes and Single Family Houses for Sale less than $600,000
North Redondo Beach MLS Listings -  Condos, Townhomes and Single Family Houses for Sale $600,000 - $800,000

Whether you are buying or selling, here's what you need to know about townhouse and condo financing right now. Detached properties are easier to finance. If the association is "inactive" as many in North Redondo Beach are, it is easier to get FHA financing. As "spot approvals" are no longer allowed for FHA, the entire project needs approval for attached units. That is a difficult and rather long process. A number of lenders are now offering 10% and even 5% no PMI loan products for condos and townhouses. But, in any case, you will probably require a "HOA cert". The lender will want to know how may units are in arrears, how many are tenant occupied and other information regarding the health of the association. Additionally, as of October 1, 2011 jumbo conforming loan limits will drop to $625K from $729,750. In fact, many lenders have stopped taking loan applications at the higher level as of July 1. We anticipate that this may drive townhouse prices down further. Good news for buyers, bad for sellers.

If you are interested in Beach Cities Real Estate, please visit our sister sites, www.90266realestate.com for Manhattan Beach Real Estate and www.90254realestate.com for Hermosa Beach Real Estate. You can also follow Socalistings on Facebook or Twitter or read Ellis Posner's Zillow profile to learn more on how to buy or sell real estate with confidence.