Redondo Beach Home Prices: February 2013 Sales

The following Redondo Beach Sales data is for North Redondo Beach (90278) Homes sold during February of 2013. For South Redondo Beach (90277) Real Estate market updates, homes for sale and other information, please visit our sister site, www.90277realestate.com.

During February 2013, 33 home sales transactions were closed in North Redondo Beach. In and of itself, that is nothing unusual. What is of note, and has become a cause of concern for buyers is that over the last 6-8 weeks there have only been about 25 or so homes available as MLS active listings at any given point in time. As a result, almost every new listing is receiving multiple offers over list price within the first 5-7 days on the market.

We can consider this to be an extremely favorable seller's market and an unusual situation for a number of reasons.

The available housing inventory on hand to sell is less than one month of active listings. When there are six months of housing inventory, the market is considered balanced. When there are over 9 months of homes for sale, it is a buyer's market and with less than 3 months, it is considered a seller's market.

While similar trends are occurring in Manhattan Beach, Hermosa Beach, and South Redondo Beach, the lack of available homes for sale is particularly pronounced in North Redondo Beach.

Here's a recap of the homes that sold during February ordered by sales price followed by some observations and comments.


 PRICE RANGE AND NEIGHBORHOODS

The closed escrows ranged between $255,550 for a 1 bedroom 760 sq ft condo up to $1,050,000 for a 3700 sq ft 6 bedroom Single Family Home built in 2000. The median sales price was $640,000 and the average sales prices was $683,258. Single Family Houses were 13 of the 33 sales and the balance were condominiums or townhouses which from a legal and lender perspective in Redondo Beach are one and the same.

There were 2 bank owned REO foreclosures and 4 short sales sold. MLS Area 151, North of Artesia Blvd and South of Manhattan Beach Blvd, saw the most activity with 12 sales while MLS Area 152, Villa Saouth, saw the second most sales activity with 10 sales.

Golden Hills, MLS Area 154, remains in high demand and recorded 6 sales, all SFRs with El Nido, MLS Area 153 having the lowest sales volume at 5 homes sold.


Going forward, you can pretty much assume that the price point of entry for North Redondo Beach will be about $500K for a 1000 sq ft plus 2 bedroom in reasonable condition that is a standard sale. Many homes in this price category also have higher HOA dues because they are in larger complexes.

As the most current price point that North Redondo Beach buyers seem to be targeting is $600,000 to $700,000, that is also the most competitive range as you would be well aware of if you've recently attended any open houses. In the condo market, you can expect to find a 3 on a lot attached townhome of probably newer vintage or an older 3 bedroom attached 2 on a lot.  For single family homes in this price range expect El Nido (MLS Area 153) or a smaller Golden Hills home.


NEW CONSTRUCTION TOWNHOMES

Four of the homes sold were new construction 2 on a lot townhomes. In our opinion, these represent excellent value at about the mid $300's per square foot. If you are looking for a new detached 2 on a lot townhome, budget around $900K and you won't be disappointed. Be prepared to make your offer before the units are completed and the first open house at which point you may be too late.

The four new construction townhouse units sold were at 1906 Ernest Avenue Units A&B and 2202 Voorhees Ave Unit A&B.

As would be reasonably expected with new construction, all the bells and whistles were included such as granite, stainless steel appliances, wood floors, upgraded cabinets, high end finish work, 4 bedrooms, landscaping, etc. And let's face it, a 2500 +/- sq ft property will fit the housing needs of all but the largest families.

BANK OWNED REO FORECLSOURES AND SHORT SALES

As previously mentioned, there were 4 Redondo Beach Short Sales in February and 2 REOs sold. Buyers may have noticed that the REO inventory has significantly dried up. Short sales most likely present the best opportunity for buyers to purchase a home below fair market value if they are willing to put up with the waiting and other associated hassles. The advice remains that if it is a home that you would otherwise want apart from the price, it is best to go for it.

By far, the best deal in Redondo Beach that sold during February was the REO at 1719 Huntington Ln which is an oversize  detached 2 on a lot on a corner that sold at the height of the market for $1.3M. This time around as an REO, it closed escrow for $761,000. Wow. That'sa  remarkable $267 per sq ft for a very high end home built in 2004. Good things come to those who wait.