Are we seeing a slowdown in Redondo Beach Real Estate? While it may look that way to some, I don't think so. In fact, if anything we are on the cusp of another jump up in prices. But to the casual observer it may not appear so.
As previously discussed, January sales were slow with only 31 closed escrows in 90278 which is way below the 2015 run rate of 533 North Redondo Beach Sales for the year. South Redondo Beach didn't fare much better with only 27 closed escrows against a prior year run rate of 419 closings. And so far in February we have only 13 closed sales in North Redondo and 17 in South Redondo Beach. But that's only part of the story.
Currently in escrow (MLS status pending or backup) there are 53 homes in 90278 and 42 in South Redondo. So, what's going on?
Most of this could very well be attributed to the after effects of the implementation of "TRID" which are the new closing procedures and paperwork, While previously, buyers received a number of often conflicting and confusing lender disclosure documents prior to their final HUD 1, the new process is supposed to make the paperwork more transparent for the public. Whether it does or does not can be the topic of a future blog post. What is certain is that while the implementation was rolled out, many loan officers started to recommend 45 day escrows stretching out the closing process.
Considering that many properties are going into escrow in 10 days or less with multiple offers (yes, some competitive situation still get 15 potential buyers) and that the traffic at most open houses is staggering, it is unlikely that we are really seeing a slowdown. As rents continue to escalate and mortgage interest rates stay low, or maybe I should say suppressed, we will continue to see huge demand throughout the traditional buying season this year and beyond.
Thanks for reading.