Redondo Beach Short Sale News and Trends

It's probably a fair assumption that most people paying attention to the housing market have heard the term "short sale". If not, here's what we are referring to; a sale in which the property is sold for less than is owed. This may include not only the outstanding balance on the first and second mortgage but delinquent property taxes, HOA dues and more. It's best to think of these transactions as being "short pays" because from a timing perspective, they are anything but short and often drag on for 3-6 months or longer. The common question we often get from buyers is whether the short sale is worth it. Sellers want to know how the short sale down the block affects their property values. So, here's what we can tell you regarding short sales in North Redondo Beach.

Year to date 255 homes have been sold in North Redondo Beach (90278) including 36 short sales and 14 bank owned foreclosures (REOs). So, there is no doubt that distressed sales, both short sales and REOs are a force to be reckoned with whether you want to buy or sell Redondo Beach Real Estate. Short sales have accounted for 14% of the homes sold and REOs 5.5%. Collectively, distressed property sales are just slightly under 20% of all the real estate being sold in North Redondo Beach. If you need a visual on that, drive past 5 houses with for sale signs out front: one of them is a short sale or REO.

Currently, there are 146 homes for sale in North Redondo Beach of which an even 20 (13.5%) are listed in the MLS as short sales. Including the 14 REOs listed, 23% of the available real estate for sale are distressed properties. There are also 57 open escrows (either MLS status "pending" or "backup"), of which 6 are REOs and 17 short are short sales accounting for a collective 40% of the recent sales activity with short sales contributing almost 30%.

Our only reasonable conclusion can be that as a growing trend, short sales will comprise a larger percentage of Redondo Beach Real Estate.sales over the next few years.  Future blog posts will examine foreclosure activity including the "shadow inventory" and take a deeper dive into short sale activity.