New Construction Sets New High Prices in Redondo Beach

I spend a lot of time a) driving around Redondo Beach and b) looking at Real Estate listings and can't help but come to the conclusion that there's a ton of new construction sitting on the market and some of these properties will sell at a discount. In fact some have already been reduced.

For me, the gamut runs from some of the nicest properties I have seen in Redondo Beach to "you've got to be kidding". Let's start with the you've got to be kidding category.

One of the trends I'm seeing is what is mistakenly called Modern but is really Contemporary. (I can cover the difference between Modern and Contemporary elsewhere.) Unfortunately a lot of what has been built in this vein is better described as "Nuevo Contempo". I made that up, that's really not a style. It's my phrase for the mismatch of seemingly edgy but to my judgement tasteless choices I see in some the recent buildings.

Also in the you've got to be kidding category are builders still coming out with the mid aughts style of dark wood, granite, dark walls, etc. Let's call it Pseudo Euro Nuveo. You know it when you see it.

Enough rant, let's get to some numbers.

As of this writing there are 127 active MLS listings in Redondo Beach. Of these, 31 are new construction built in 2016. That's a staggering 24% of the total of all properties currently offered for sale. There are another 16 properties in escrow out of a total of 117. That's "only" 13.6%.

Digging deeper of the 31 listings only 4 were under $1M and 3 of those were at $999K. The average price is $1,554, 548 and the median is $1,295,000. The average is distorted by a $5.5M listing that is currently being built.

If you are thinking of buying new construction in Redondo Beach best to have a budget of $1M+. The entry level price point will get you a 3 on a lot in North Redondo Beach. It will be a very nice 3 on a lot for sure.

Detached two on a lot Townhomes in North Redondo Beach are going for $1.250M to $1.350M. If you want a new SFR in 90278 Tall and Skinny houses are now $1.4M+ and traditional SFRs are $1.6M-$1.7M.

Moving south to 90277 Real Estate, new detached two on a lots are going for $1.5M and up and a SFR will start at over $2M.

With new construction at these price points, the net effect is that now the preponderance of Redondo Beach homes are in what is traditionally considered to be the "Luxury Market" which is generally throughout the US considered to be above $1M.

With 78 $1M plus listings in Redondo Beach that is now 61% of the market. Not quite Hermosa Beach or Manhattan Beach yet but certainly headed in that direction.