Beach Cities Homes in High Demand: Redondo Beach CA Real Estate

Whether you are thinking of buying or selling a  home in Redondo Beach CA, everyone has been hearing the refrain "there's no inventory". How bad is it and what exactly does that mean?

Well, it's bad. There simply aren't enough homes for sale to satisfy the huge demand for Redondo Beach properties in all price ranges. Let's look at the current activity and inventory levels as of this Memorial Day 2013 blog post.

Currently, there are 31 active listings in North Redondo Beach, 90278. There are 91 homes in escrow (MLS status backup or pending). So far in 2013, 178 homes have closed escrow (MLS status sold) which is about 35 per month. At this rate, closed sales are running behind 2012's rate of 41 per month (492 homes sold in 2012). If there were more inventory there would be more sales.

However you cut it, there is barely, and I mean barely, enough homes on the market to satisfy the current demand. We would probably have to see inventory rates increase to at least 90 days of inventory on hand to start to balance the market out. That would mean about 100 active listings, or three times the current MLS listings. Take a look at the following graph and what's going on becomes very apparent.

While this graph only reflects data through April 2013, for every month this year the number of properties that have gone into escrow have exceed how many homes have been sold or are listed for sale. Since October of 2012, pended and sold properties have exceeded active listings every month. That's what's meant by "there's no inventory".

For comparison let's also look at the other Beach Cities of South Redondo Beach, Hermosa Beach, and Manhattan Beach, CA none of which are quite as constrained as North Redondo 90278.

Currently in South Redondo Beach CA, there are 56 homes offered for sale in the MLS. There are 79 homes in escrow and 159 sold so far this year. In Hermosa Beach 90254, there are 28 homes listed as active in the MLS, 38 in escrow, and 20 sold so far this month.

For Manhattan Beach CA, the story is not much different with 59 active listings, 65 in escrow, and 42 closed sales so far in May.