There have been 11 REO foreclosure sales in Redondo Beach through the first six months of 2013. Of those, 4 have been in South Redondo Beach (90277) with 7 being in North Redondo Beach (90278).
This pace is down considerably from 2012 when there were 52 REO foreclosures sold and 2011 when there were 55 REOs sold. If you aren't familiar with the term REO, it stands for Real Estate Owned (by the bank) and is synonymous with a "foreclosure" sale.
It is possible that this trend may soon be changing. While the inventory of bank owned REOs and properties scheduled for sale has for the most part flat lined over the past year, recently the pre-foreclosure inventory has spiked significantly. Whether this means that we see more short sales on the market or these properties eventually are listed as bank owned REOs remains to be seen.
If you want more information on buying a bank owned foreclosure or short sale, or more information on the data behind the above graphic, follow this link for Redondo Beach foreclosure information.
So back to current year foreclosures in Redondo Beach. Here's a list of REO sales for 2013.
What got me on this train of thought was as I said, the foreclosure listing at 313 Anita St MLS 13678793. If you are not familiar with Anita, that's basically the strip of 190th in Redondo Beach before it becomes Herondo in Hermosa Beach. Got that?
313 Anita first caught my attention for other reasons than it is a foreclosure. First of all, it was designed by Pat Killen a noted local modern architect. If you follow my blogs, you already know I'm a big fan of Pat Killen and there aren't a lot of examples of his work - or at least enough to satisfy me, in North Redondo Beach. You've probably driven past this one a million times. It's basically the corner of 190th and PCH about 2 houses east of the Land Rover dealership.
It's priced reasonably priced considering that it is 4 bedrooms, 2121 sq ft detached townhouse and an easy walk to the Strand in Hermosa Beach. The downside is you are on a busy street, close to the electric wires and power plant and the uncertainty re how that will all play out. I would have probably listed it at $749K and let it be bid up. Curious to see how it plays out. Great deal? Not really, but there's no inventory and it is a very unique property.
Here's my comments on some of the other Redondo Beach REOs that were for sale this year (full list above).
13659459. This bank owned foreclosure is a detached 2 on lot on a N-S street having no common driveway. As a 5 bedroom, it is unique in the area. At 2790 sq ft, it is over sized compared to many other townhomes. It was built in 2005. Good deal at a sales price of $890K? From my perspective about an average and fair deal these days. I just sold 1105 Harkness Ln which is older but considerably larger for $876,000. Harkness is also a N-S street but far quieter and further west than Rindge. Of course for someone needing a 5 bedroom, different story entirely. This property was initially listed for $979,000 which at the time may have been too much. The listing agents were from Coldwell Banker in Beverly Hills and may have mis- read the local market initially. I continue to maintain that detached 2 on a lots are some of the best values in LA County with the "no common driveway" units being highly desirable.
1719 Huntington Ln, on the other hand, I consider a great deal for some very fortunate buyers. This property was listed by David Judd who is probably one of the most active REO listing agents in Southern CA and who knows where else. I've seen his REO listings everywhere from the desert to the Valley and the OC. His listings typically only state "property sold as-is without warranty" or some other similar one line description. In the agent remarks there's always something about "deal directly with the asset manager", pay a technology fee, turn on the utilities on your own, and pay a buy it now price. He lists the homes as both REO and auction. I've done some deals with him, they went well and closed. He has an interesting volume oriented business model.
This corner lot townhome was built in 2004, also was 5 bedrooms, and measures 2843 sq ft. At a sale price of $761,000 that's a killer deal at $268 sq ft. Wow. MLS IV12140301. Oh, it was listed for $800K.
Another David Judd "special" was the bank owned foreclosure at 2004 Voorhees Ln Unit B. This 4 bedroom townhouse is 2603 sq ft and was built in 1991. It was not in particularly good condition and sold for $648,299 which was above the asking price of $620,000. That's $249 a sq ft. So this one was also a screaming deal that closed escrow at about the same price as 3 on a lots in MLS Area 152 are going for.
611 Vincent St in South Redondo Beach sold for above the list price of $819,000 which was too low for a 2140 sq ft single family home. But to be fair, this was listed last December (but closed escrow in 2013). Definitely a deal for a 3 bedroom SFR in a great location even though it sold way over the asking price for $870,000. MLS SB12152982.
Tuscan architecture in the South Bay area. Minutes to Redondo Beach Pier and beach area. This high end condominium features custom soundproofing triple pane windows, interior and exterior fireplace, patio with outdoor/indoor surround system hook-ups, 2 zone A/C, custom gourmet kitchen, and granite counters tops, stainless Jenn Air appliances, custom travertine tile in all 3.5 baths. This unit has open living room that connects to the large balcony that has some views to the PV area. This is the middle unit in the front building with easy access. This townhouse was listed for $699,900 and sold above the list price at $715,000. Considering that this property was built in 2006 and is 1720 sq ft, it is pretty good value for S Redondo. MLS Y1206279.
So, here's my thoughts:
Buying a foreclosure may or may not be a good deal in terms of price and value. Some sell for about fair market value, some considerably below. We know that by the time a bank asset manager tells a Realtor to list a REO, they are ready to get that asset off their balance sheet. There's no "I don't have to sell".
With inventory remaining in very short supply (particularly in North Redondo Beach, and REO listings clearly on the decline compared to past years, it's probably not a good strategy to hold out and only try to buy a foreclosure. But if you can find one, based on what we've seen this year, you may get a very good deal!