We publish the accompanying graph from time to time showing the number of homes for sale in Redondo Beach, pendings, and closed escrows. It should be fairly apparent that year over year the inventory of homes listed for sale in the multiple listing service (MLS) has declined by over 50% while closed escrows have doubled. October 2012 was unique in that the both the number of sales and homes going into MLS pending or backup status were greater than the available inventory. As a result we are seeing many houses selling without ever hitting the MLS (pocket sales and off market), multiple offers over list price, sellers asking buyers to remove "appraisal contingencies" upon acceptance of offers, buyers entering into "back-up" positions and many other terms and conditions of real estate contracts that would have been unthinkable a year ago.
The lack of available housing for sale has caused some major aberrations in usual real estate metrics:
- Available housing inventory has declined to 1 month of inventory.
- Days on market of houses sold has declined to 62.
- Average price per square foot has increased to $360 which is at least a 15 month high.
- Absorption rate of closed and pended homes is over 100%.
- On average, homes selling for 98% of list price.