Buy or Sell Redondo Beach Real Estate

Greetings. Whether you want to buy or sell Redondo Beach Real Estate, there are many factors in your favor.

SELL REDONDO BEACH REAL ESTATE

As a seller, you don't need to know much more right now than the inventory of available homes for sale in Redondo Beach is half of what it was a year ago and due to historically low interest rates, the buyer demand is up significantly. As a result, desirable Redondo Beach homes that are priced right in the MLS are selling in less than 30 days, quite often less than 7, and with multiple offers above list price.

In addition to getting a higher price when you sell your home you may be able to negotiate much more favorable terms than at any time since the housing crisis began. Other than safety and health concerns you will probably not be required to make any repairs and may even be able to sell your home "as-is". You may even be able to have your buyers waive certain contingencies that are normally part of real estate transactions such as physical inspection or even appraisal. Or, if they will not waive those purchase contingencies, possibly shorten the contingency period. An experienced Real Estate Agent can best advise you as to how to negotiate the best terms on the sale of your Redondo Beach Real Estate.

As the chart below shows, year over year available homes for sale in Redondo Beach has declined from 140 in June of 2011 to 70 in June of 2012. With a blistering pace of 53 closed escrows in 90278 during June (as reported through the MLS), supply is equal to about 5-6 weeks of homes for sale.

Year Over Year Redondo Beach Home Sales Comparison

BUY REDONDO BEACH REAL ESTATE

Interest Rates Are Low
Competition for desirable real estate in Redondo Beach is fierce right now. A hot property may get over a dozen offers the first week on the market and sell for 3-5% above the list price in the MLS. You will be competing against "all cash" investors as well as other buyers similar to yourself who may have missed out on other homes for sale and are now willing to offer significantly more than the MLS list price and keep their fingers crossed that the appraisal will come in at the sale price.

The "win" for buyers today is to be able to secure the home and lock in historically low mortgage interest rates. In many instances, you can own for less than it would cost to rent if you can come up with the down payment and qualify for a loan.

For example, 3 bedroom townhouses that are renting for about $2800-$3200 per month in North Redondo Beach may be selling for $500,000-$600,000 if you can find a property to buy. Most likely you will need at least 10% down in this price range. So, for example, if you buy a Redondo Beach townhouse for $550,000 with a 10% down payment and finance $500,000 at 4%, your monthly payment for principle and interest will be about $2387. To that add about $150 per month for HOA dues (on a townhouses) and then another $550 per month in property tax including Prop 13 plus local Redondo Beach assessments.

So, for about $3100 a month, before any tax savings (please consult your tax preparer), you now own a home in Redondo Beach CA instead of making your landlord wealthy.

WHY YOU SHOULD SELL REDONDO BEACH REAL ESTATE NOW

No doubt we are currently in a real estate seller's market and Redondo Beach home prices are not only stable but probably going up. This is probably true throughout the Beach Cities, the South Bay, LA County and Southern CA in general. So, the natural tendency is to think, "why sell now? I can get more later." Maybe yes, maybe no. In Real Estate all we ever know for sure is what we know today. And today an experienced real estate agent or broker can get more net proceeds from your property sale for you with better terms than at any time recently. What can make this change? Interest rates go up, changes in the lending environment making it more difficult for buyers to secure a mortgage, political changes (I hear there is an election coming up) and for all we know the next Congress blows up Fannie-Freddie killing the secondary market for mortgage securities. Or Europe collapses.

WHY YOU SHOULD BUY REDONDO BEACH REAL ESTATE NOW

Multiple Offers are the New Normal
More than 30% of home owners in CA and even in affluent cities such as Redondo Beach remain "underwater" meaning that they owe more on the homes than they are worth even in today's market. As a result, many homeowners only sell when they have to. We continue to see the preponderance of homes for sale coming as a result of foreclosure, job loss, relocation, divorce, illness or death in the family and other similar circumstances. Statistically that is not likely to change just because more people want to buy Redondo Beach Real Estate.

As long as the market remains this competitive, and there aren't as many single family houses, townhouses, and condos to meet demand, prices are very likely to rise. Add to that the very real possibility of inflation once the economy recovers and today may be your best opportunity to invest in Redondo Beach so don't wait. We've already seen the under $400K market for 2 bedroom townhouses and condos dry up significantly and right now it is very difficult to find a decent 3 bedroom for under $500,000.