BUYING A HOME IN NORTH REDONDO BEACH?
If you've been in the market to buy a home in North Redondo Beach you may very well be frustrated by the persistent lack of inventory. As of this post there are 41 active listings and 50 in escrow. based on the "under contract" analysis that is less than 1 month of inventory on hand. (Using the historical run rate of approximately 500 sales per year yields the same result.)
But if we dig deeper, 16 of the 41 listings (39%) are new construction homes with an average days on market of 140! Wow. It should therefore be no surprise that any reasonably priced resale in average or better condition sells after the first weekend Open House and sometimes before.
Actually, digging deeper into the current available inventory two other data points jump out.
First, 3 of the listings are age restricted condos to 55+. So, that takes many Buyers out of contention and in my opinion makes the "true" inventory 38 units.
Second, net of the 55+ properties there are only 17 properties in 90278 listed for under $1M. Adding the 4 under $1M in South Redondo Beach and the 2 in Hermosa Beach it makes for a tough environment for Buyers on a budget in the Beach Cities. (Needless to say Manhattan Beach starts at $1M plus.
So, here's what is happening these days.
A new listing hits the MLS and every potential Buyer probably gets an instant notification on their mobile app of choice. They then head to the weekend Open House which is jammed. Offers are reviewed on Monday or Tuesday and the price gets bid up. A lot in many instances. Then Wednesday-Thursday new listings hit and the cycle starts anew.
Meanwhile, the new construction sits inflating both the inventory numbers and price points.
Many builders will start their new construction list prices very high to test the market. But while these properties are sitting Sellers of resale homes price their listings based on a discount to the new homes (because all things being equal no one will pay more for a resale than new).
At some point the builders may sell at a discount thereby bringing the gap between new and resale closer.