Redondo Beach Market Trends | Inventory at High Point for 2016

If you have been driving around North Redondo Beach recently and think you are seeing more "For Sale" signs, you are not imagining anything. Inventory is up and there are more listings and they are taking longer to sell.

I've been seeing this trend coming and all I can say is "now that happened".

By "that" I mean the tipping point at which more home owners decide to sell. There have been a lot of fence sitters the past year or so waiting for prices to get $25K higher, or $50K or pick any random number.

Truthfully I had to look twice when I saw the results come up: 65 active listings in 90278 as of right now. There were months when all we saw was around 30. What concerns me is that there were only 39 sales in June and right now there are 64 properties in escrow. I like to see some of these numbers more in balance. But there's no doubt that as prices have continued to rise, buyers have just said "no". Well maybe "no thank you" or something I can't write here.

By comparison, last year in June of 2015, there were 58 closed escrows in 90278. So with interest rates at the same or even lower level, there's no way around it, sales are soft.

It's all about price, well the seller's price anyway, so let's look at a few examples.

Last June 2013 Carnegie Lane closed escrow for $758,000. It is a very nice front unit 3 on a lot with a reverse floor plan built in 2013. By comparison right now, 2305 Carnegie Lane Unit B, middle with 2 common walls, is on the market for $789,000. So, that's within reason, But then you have a listing like 2116 Carnegie Lane B for $865K. down from $895K. That one is listed by an "out of area" agent (bad idea). But still. My listing at 3506 Blossom Unit B, went for $797,000 but that one at least was larger with no common driveway and an extra "office" space. And all the bedrooms on the same floor.

Here's another example of a detached townhouse.

2012 Gates Ave Unit B was listed for $1.399M and now has been reduced to $1,349,990. It is a very nice detached rear unit almost 2500 SqFt 2 on a lot with 4 bedrooms built in 2009. By comparison 2110 Ernest Unit B which was new when it was sold in 2015 and about the same size and floor plan, went for $1,160,000 last year.

I think you get my point.

So if you are a buyer, now may be your opportunity to negotiate a little harder. For sellers, don't wait and don't think your house is worth $50K more than the last sale.