North Redondo Beach March 2017 Sales: Market Update


MARCH 2017 NORTH REDONDO BEACH SALES


As we come out of the winter doldrums and enter the traditional Real Estate selling season, we are seeing a very active, almost over heated, market in North Redondo Beach. Sales were definitely up from January and February.

With the exception of new construction, low inventory persists, prices are going up almost weekly and multiple offers are the norm. Expect the hottest new listings to sell after the weekend open house or even before.

The good news for Buyers is that after all the hoopla about Federal Reserve movement, rates are still near or at historic lows for some programs. A few lenders are offering 3.75% for Jumbo 30 year fixed rates (but that could end by the time you read this).

For what it's worth the economists think these market conditions may persist for the foreseeable future.

Here's a quick overview of March activity in 90278:


And here's what jumps out to me:
  • 41 Total Sales*
  • 18 Single Family Residences
  • 23 Townhomes / Condos
  • Average Sales Price $951,662
  • Median Sales Price $918,000
  • 22 Properties Sold over MLS List Price
  • 14 Sales Over $1M
  • Highest Priced Sale $1,685,000
  • 32 Homes Sold in Less than 30 Days on Market
  • Average Days on Market 35
  • 9 Homes Sold were New Construction
*3 of the 41 were sold by this author - more on those later.

NORTH REDONDO BEACH MARKET TRENDS 

With the market moving so rapidly where do we start on this topic? How about the Redondo Beach Golden Hills and the most expensive sale last month which as noted above closed escrow for $1,685,000.

1716 Harper Av, Redondo Beach 90278




"This exquisitely designed brand new 3100 square foot home in the desirable Golden Hills section of Redondo Beach. Entertain in grand style in the chef’s kitchen which features a full stainless steel Viking appliance package, Italian Quartz countertops, and a beautiful Spanish tile backsplash. The kitchen opens to a great room bathed in sunlight with 18 foot ceilings, a wall of windows, and a floor to ceiling stone fireplace. Panoramic eastern views of the South Bay lend an air of unparalleled spaciousness. Modern living continues with a top level loft which includes a private bath and opens to an oversized deck with west facing views. Every detail of this luxurious home has been carefully selected and quality crafted from designer Italian bathroom tiles and Hansgrohe fixtures to 9 inch French oak plank floors. The lower level provides a 600+ square foot bedroom suite/in-law apartment with an elegant full bath and a wet bar complete with fridge and quartz counters. Highlights include LED lighting, whole house ventilation, an installed security system with intercom/video, a solar ready roof and a garage pre-wired for an electric vehicle."

The two criteria which are driving price increases came together in this sale. The first being New Construction which I have written about extensively and the second being Golden Hills, also one of my frequent topics.

Its not difficult to see why new construction is a driver of price appreciation. Presumably, all things being equal, no one is going to pay more for a resale property than a new home.

Well all things are seldom exactly equal, because the next highest sale, also in the Redondo Beach Golden Hills closed escrow for $1,500,000 and was built in 2015. (pictured at top of post and below)


1713 Reed St, Redondo Beach 90278




"This spectacular home has 4 bedroom, 3.5 baths, 2,520 square feet and is located in the desirable Golden Hills neighborhood of Redondo Beach. Ambient natural light surrounds you in spacious rooms with high ceilings and tall doors. Enjoy entertaining in a voluminous open concept kitchen, dining area and living room. Sweet dreams are yours in the sumptuous Master Suite with its soaring ceilings, cozy fireplace, large walk-in closet and balcony. Fabulous Master Bath has jet spa tub, separate shower and skylight. 4th bedroom with bath has large private rooftop deck. This beautiful home has many extras – hardwood and limestone floors, plantation shutters, wainscoting, Carrera marble, Mexican Talavera floating sink, plumbed for central vac. Relax in the great outdoor fenced yard with large patio and grassy area. Street to street lot with guest parking on Ford Avenue. Close to beaches, shopping and schools."

So how come it sold for more than some other new homes?

As I  wrote above "all things being equal" new will sell for more. In this case the home has an A+ location, amazing construction, a unique floor plan and a larger than typical lot for Golden Hills. Throw in that there are no homes behind this one on Reed so there is a greater level of privacy.

1713 Reed was also built by one of the best local builders, Craig Casner. Speaking of during March I represented the buyer of a new construction Casner detached Townhome which sold for $1,270,000. About the same size as Reed but a 2 on a lot and not in as good a location - although still a very good location.

2224 Gates Av # A, Redondo Beach 90278


I represented the Buyer of this Mediterranean Detached 2 on a lot. At  2600 plus SqFt it is larger and newer than Reed but sold for less.

Not only did the buyer get a great deal on new construction, but we also were able to negotiate the price down from a previously reduced price. Here's a Buyer Pro Tip:

Over 90% of new construction sells at a discount to the original list price (unless it sell pre-market). And typically, many new construction homes will be on the market for over 120 days.

But if you are buying a resale property that was just listed......

MULTIPLE OFFERS AND OVER BIDS ARE STILL THE NORM


I had two listings close in North Redondo during March 2017: 2502 Rockefeller Lane Unit C and 2411 Carnegie Lane Unit C.

Both received multiple offers, sold over the asking price and were in escrow in a week or less. And curiously the highest offers were not accepted for reasons described below.


Buyer Pro Tip: be prepared for a "bidding war" on new listings. And remember that the highest price doesn't always get the deal. If you can offer better terms, more money down, a leaseback or other attractive terms, your offer may be accepted.

MARCH SALES MAP