Redondo Beach Broker's Open Houses, New Listings, Pendings and Sales

So as we wind down 2014, sales activity in North Redondo Beach is relatively mundane and uninspiring. In fact, on the Broker's Open House tour today I found more properties that were interesting in South Redondo Beach than North Redondo. But that's a story for another post.

Over the last 7 days, there have been 11 new listings (including one churn), primarily in MLS Area 151-152 in 90278. During the same time period, 9 properties have gone into escrow and 5 have closed escrow. This leaves us with 56 available active listings and 54 in escrow.


I'm now more inclined to look at the absorption rate as a comparison between properties in escrow vs those that are active rather than those that have sold (as I have been doing). Here's why.

Properties taken off the market because an offer have been accepted may be a better indication of both flow and demand than closed escrows. Escrows can not close for any number of reasons such as appraisal, financing, inspections, seller contingencies etc which do not reflect true market demand.

Based on the above, we can then say that there's about 1 month of available inventory and close to 100% absorption rate.

A few interesting transactions I noticed. Amir Amiri is listing and/or buying a few properties in the TRW tract and MLS area 151. The tax records show the current owners of 2005 Robinson St and 1913 Plant Av as Amiricorp. What I find interesting is that based on the list price, these are rather high prices for lots compared to what builders have paid in the past. Throw into this a little bit of rumor mill that another broker mentioned to me that he though he saw Amir (actual) himself at a new listing at 2109 Morgan which is an R2 lot priced at $849K. On the surface, that would appear to me to be too much for a builder to pay.

So if lot prices are going up, that only means that new construction can only be going up which can only mean one thing: all prices will be on the rise. Eventually.


Speaking of builders, one of the more interesting new listings is 2406 Green Lane (pictured above) which is a 3200 sq ft SFR on a 4993 sq ft lot with 5 bedrooms 4 bathrooms. The tax records indicate that the property is owned by Craig Casner but the listing agent makes no mention of Casner Construction in the MLS description. I don't quite get that because Casner is the best builder around (sorry Amir and others) and I've always been able to get a premium on his resale homes.

Green is priced at $1,529,000 which is, how shall I say this, a big number for North Redondo Beach Real Estate. A really big number. I'm not saying the house isn't worth it, just that we'd have to go back almost a year, to December 2013 to find a North Redondo Beach Sale over $1.5M. That house was also new construction (Amir Amiri) at 2106 Belmont Lane and per some agent remarks in the MLS did not appraise. After that, the next high was $1.425M for 2100 Speyer Lane which just recently closed.

Which might make some of the more recent transactions that are catching my attention make a lot more sense. Here's the thing with land. They aren't making any more of it!