Redondo Beach Real Estate Trends, Data, and Home Prices

Wow, it's a great time to sell Redondo Beach Real Estate. But if you are trying to buy a home in Redondo Beach right now you may be more than just a little frustrated with the lack of inventory and escalating home prices. Of course with interest rates still at historic lows and rents on the rise, it's still a great time to buy a townhouse, condo, or single family residence in Redondo Beach. In fact, many homes are still selling for less than your comparable rent would be.

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.
 As discussed elsewhere, this has caused ongoing appraisal issues as sales prices out pace the supporting trailing data.