|North Redondo Beach SFR Housing Price Index|
As soon as someone finds out I am a Realtor, the next question is always, "How's the market?" The answer is always "it depends" on whether you are a buyer, seller, investor, or renter. But truthfully, the market in North Redondo has been, as the saying goes "crushing it" with 458 closed sales during the first 10 months averaging of 2015 and you can easily do the math and see that is almost 46 properties per month.
But after a very strong pace throughout the first 10 months of the year, November closed escrows slowed to only 26 properties sold in North Redondo Beach 90278. This is somewhat mirroring what I have also recently seen in Manhattan Beach (22 sales in November) and Hermosa Beach (16 sales).
What's behind the drop off? Is the market slowing down. Well yes and no.
In North Redondo Beach there are currently 63 homes in escrow. Let's assume all of those close in December and we finish the year with 89 sales in Nov-Dec, we're pretty much on pace with where we were throughout the year. In fact, that would out us over 500 sales in 90278 for 2015 and that would be a really great year. On the other hand with there only being 34 active listings in the MLS as of this morning, there's barely enough inventory to replenish what will sell.
So, looking at absorption rate with the "under contract" (UC) calculation, we have 2 weeks inventory on hand. That tilts towards and extreme Seller's Market and in fact I am seeing that in some recent pricing.
If I were to speculate as to why November sales were so light, here's a few thoughts.
First, as lenders implemented the new TRID requirements, we started to see a lot more 40 and 45 day escrows than previously and I'm sure that pushed some November closing back to December,
Second, remember that heat wave in October? That really slowed a lot of business down as everyone lost their appetite for buying anything except air conditioners.
The third factor, and this is the one I want you to pay attention to is that prices escalated way too quickly and we've seen Sellers just get way ahead of what Buyers wanted to pay for certain properties. I probably saw the most of this is Golden Hills where there is significant push back above certain price points.
A few observations re November Sales
- 3 Sales were "new construction" completed in 2015
- 17 out of 26 sales were above the MLS asking price
- 8 of the homes sold were SFR
- 18 sales were townhomes or condo
- Highest priced closed sale was $1.385M
- Average sales price was $839,490 with the median slightly nigher
- Average days on market (DOM) 34
- 1 REO sale (remember those?)
- Merit Real Estate listings may sell for under list price
Here's a recap of what sold in November by neighborhood.
MLS AREA 151 - VILLAS NORTH
MLS AREA 152 - VILLAS SOUTH