I sell a lot of Redondo Beach properties and traditionally I've said that 90278 is a $600K-$800K market and there were good choices in that price range. I'm not so sure about that anymore and have to believe the feedback I heard from that buyer that most likely you will have to be above $800K, if not now in the near future, or at a minimum spend more than you expected to. (FYI, Huntington in escrow, 16 days on market.)
|Months of Housing Inventory in Redondo Beach 90278|
So, if you are a buyer looking for a home in 90278 and have been following prices on the internet for a while, expect to pay upwards of 10% more than if you bought 9 months ago. That is if you find a property considering how low the inventory is. We've been running at about 1 month of inventory, 50 some homes for sale and an almost equal amount selling, for quite a while now. So even if more listings come on the market, there are still far more buyers than likely listings we'll see. For all those stories of 10 plus multiple offers (over the asking price) the buyers who missed out aren't going away. They'll just offer to pay more on the next property stoking the price escalation.
|2419 Grant Av Unit A Redondo Beach CA|
I've seen rapid escalation in 3 on a lot properties. Here's an example. I represented the Buyers of 2419 Grant Ave Unit A a little over a year ago. That property is a front unit of a 3 on a lot built by Powers Development in 2003 with your standard reverse floorplan and 3 bedrooms. It sold for $629,000. Now I see 2518 Grant Unit A just listed for $759,000. It is one year newer and about 100 sq ft larger. Also one block further east and facing north so that you see the power pole towers right in front of you when you look out your front window.
|Townhouse Listing at 2518 Grant Ave 90278|
But is 2518 Grant Av over priced? Not really by current standards. Unit C just sold for $726,800 about a month ago. 2014 Grant Ave Unit C sold for an even $750K, 2617 Grant sold for $710K, well you get the idea. With brand new construction selling for well over $800K, mid $7's is the going rate for any 3-4 bedroom 3 on a lots about 10 years old, drop down to mid to high $6's for 1990's, etc.
Going back to sticker shock for a second, YTD there have been 114 closed escrows in North Redondo Beach per the MLS. The median price is $700K right on the nose. The average selling price is $725,718 for a 1779 3 bedroom (kind of sounds like a 3 on a lot to me).
|Casner built detached N Redondo Townhome|
For example 2212 Marshallfield Ln Unit A just closed escrow for $900,000. 4 bedrooms, 2.5 baths, 2350 sq ft built in 2003 by Casner. 2007 Marshallfield, one year newer closed for $936K and that one was REO! Move up to $999K and you can buy brand new Amir Amiri detached 2 on a lot townhomes. So now we're talking about million dollar North Redondo Beach Townhouses which has to have some buyers heads spinning even if they are really, really nice properties.
|For Sale vs Sold Trend in n Redondo Beach|
One, as prices continue to rise more and more home owners who were previously underwater decide to sell (assuming they can find somewhere to move to). If that trend picks up, supply and demand become more in balance and instead of this lopsided Seller's market we've been in for a while, things even out.
Or, if prices and interest rates continue to increase then at some point buyers just say "forget about it, I'll rent". We're not there yet, but Zillow considers that 57% of the homes in the LA market are overpriced by historical historical standards. That's scary.
Or, as has happened previously, buyers substitute loan products and location in order to buy.
Let's look at one last category, maybe the most shocking to me, and I'm in the Real Estate business.
|Golden Hills "Tall & Skinny" SFR|
Let's circle back to the original topic: buyer sticker shock at Redondo beach home prices. As of the date of this post there are 61 active North Redondo Beach listings. The median price is $725K. There are 12 homes listed between the median price and $799K. That's almost 20% of the market. There's another 12 listed between $800K-$900K. More telling, of the new listings this week, they are all above the median price. So, if you are planning to buy in North Redondo Beach, be prepared to budget more than you had anticipated.