North Redondo Beach Real Estate Market Update
With about one week left this year and a major Holiday weekend coming up, we are looking at one of the lowest inventory levels we have seen in 2016.
As of this post there are only 33 active listings.
I can best describe this group as the greatest hits of what's not selling plus some just plain weird listings. Well for the most part anyway. There's certainly some good properties in the group.
What we are seeing is buyer resistance at certain points. The resistance is only likely to get greater as the reality of higher interest rates sinks in.
Price Resistance Points
We are seeing a fairly large pileup, well maybe a train wreck, of new construction homes sitting on the market: 15 of the 33 listings were built in 2016. By my math that's 45% of the inventory. And as of today the new construction properties currently on the market are running at 93 DOM as compared to all the others which collectively are at 57 DOM.
For the most part these are all very nice properties but buyers are not moving forward at the current list prices. Or even close.
Seven of these homes are 3 on a lots priced in the very high $9's or just over $1M. All of them are in the new current contemporary style (see below).
Nice, right? At 4 bedrooms, a little over 2000 SqFt, that puts the price per SqFt in the low $500s which for new construction is more than reasonable.
Here's a few more to look at:
FYI as these properties are sold, the status will update. Available today, gone tomorrow? I hope so.
For detached 2 on a lots the builders have been trying to push the $1.3M price point and not having the greatest success at doing so.
If You Are A Buyer
The bad news is that mortgage interest rates have substantially increased since the Presidential Elections. The good news is that some of the new construction properties will have to sell for less than the current list price at some point which will create downward pressure on some other resales. Some of these other resales are also over price. Or at least priced higher than the market will bear.
For example there is a rear unit 3 on a lot on the even side of Mathews (backing up to the commercial on Artesia Blvd) priced higher than some of the new construction 3s. Might be a nice unit but doesn't make much sense to me.
The recent construction, meaning post 2005, resales seem to be where the biggest disconnect on pricing has occurred as home owners have tried to price their properties the same, or even higher, than new construction.
What has not been affected as of yet is the lower end of the market. But we may have to redefine lower end in North Redondo as currently there are only 5 listings under $750K (really) and one of those is a senior unit, 2 are "auctions " (more about that another time(, and one is clearly over priced.
In fact as of right now, there are 16 properties under $1M listed, so 50% but of those 9 are between $899K and $999K.
If You Are A Seller
Good news is very little inventory, bad news is interest rates are up limiting some buyer's purchasing power.
If you have a home that will sell for less than $850K and it is marketed properly you will have a lot of demand. Between $850K-$1.250M be very careful as to the pricing and presentation because that is where the most choices are for buyers.
Above $1.25M you will need some real justification as to why your home should sell for more than the new construction - which isn't moving, is listed for.