North Redondo Beach April 2017 Sales: Market Update

APRIL 2017 NORTH REDONDO BEACH REAL ESTATE SALES


Now that we are into what is traditionally the busiest time of the year for home sales, the numbers are tracking more in line with expectations. Specifically, after a slow start to the year we are now seeing closed escrows track at 40+ per month which starts to get us closer to the target of 500+ sales per year in North Redondo Beach.

Since the last monthly round up some of the lingering new construction homes have gone into escrow. We're also seeing the rather surprising phenomenon of some resales properties selling for less than new construction. So much for my maxim that "all things being equal, no one will pay more for a resale than a new home." More on that later.

Interest rates have been stable in the high 3's and low 4's depending on the loan program and mist buyers have adjusted to this. Truthfully we are still at historic lows.

Inventory remains very low and the dance of putting homes on the market Wednesday-Thursday, having a flurry of activity at the weekend open house, getting multiple offers and being in escrow in under a week continues unabated.

While we remain in a Seller's Market based on any normal calculation, if there is good news for Buyers it is that instead of 12 offers on every property we are seeing more like 6-7 with many of those being very high down payments with waived appraisal contingencies.

On the other hand, prices are still going up although there is certainly price resistance setting in at some levels, particularly for new construction if it has been sitting on the market for a while.

Here's the actual sales by address and sales price. Scroll down to the bottom of this post to view full listing detail for all the properties.

Here's the April activity bullet points in North Redondo Beach.
  • 43 Total Sales
  • 16 Single Family Residences
  • 27 Townhomes/Condos
  • Average Sales Price $952,302
  • Median Sales Price 922,500
  • 21 Properties Sold over List Price
  • 17 Sales Over $1M
  • 6 New Construction Sales
  • Highest Priced Sale $1,725,000
  • 29 Listings Sold Less than 30 DOM
  • Average Days on Market 43
By comparison, in April there were only 24 sales in South Redondo Beach (head over to 90277realestate.com for more on that), 18 in Hermosa Beach and a very strong 48 in Manhattan Beach CA.

Year to date through 4 full sales months there have only been 140 sales in 90278 putting us behind last year's pace for sure. Hopefully, there will be a few solid 50+ sales months to help catch up.

Calculating either the sold or under contract metric indicates we are in a very strong Seller's Market. As of this posting there are 40 active listings compared to 35 sales per month average. That's about 1 month on hand. Looking at the in escrow calculation, there are a staggering 80 properties under contract. So that's 2 weeks of inventory. Which is why prices are on the rise. Supply and demand.

A lot of activity (17 April sales) is still in MLS Area 152 - South of Artesia. This is partially due to affordability as most of the 3 on a lots are located here and there are also ample 2 bedrooms.

In MLS Area 151 North of Artesia Blvd there were 11 sales. El Nido (Area 153) had 5 sales and there were a very healthy 10 properties sold in the Golden Hills.

April closed sales started from $399,000 and topped out at $1,725,000. At the low end the sales are condominiums in 55+ restricted buildings. Other than those condo complexes which are both located on Artesia Blvd, consider around $600K to be the entry level for a 2 bedroom unit in North Redondo Beach. And we're even seeing some of the nicer or larger units going close to or slightly over $700K.

To close on a 3 bedroom in April you would have had to be over $700K at a minimum and the entry level for 4 bedroom  2 on a lots is now over $900K.

Golden Hills Tall & Skinnies have seen recent massive price appreciation and newer, but not new, 3 bedroom standard reverse floor plans are fetching over $1.1M and close to $1.2M in many instances with a newer 4 bedroom resale on Reed going for $1.46M.

In the history of North Redondo Beach there have only been 3 residential sales over $1.7M and all within the last 6 months. One of those was in April and closed for $1.725M. And it was a resale not new construction!

The most common question I'm getting from Buyers and Sellers now is "are we in a bubble?". I don't this so - you can read my thoughts on that here.

The second most common question comes from Sellers who are asking "how do I sell?'.

Here's some April sales that caught my attention because they are all food indications of just how much home prices in North Redondo Beach have gone up. (MLS descriptions in italics.)

1913 Gates Av, Redondo Beach 90278


This 4 bedroom 2891 Sq Ft custom Single Family Residences tied for the second highest sale in Redondo Beach EVER at $1,725,000 after being listed for $1,799,000. It was previously listed for higher and this time was on the market for 79 days.

"Superhuman Eastern Zen style innovation lightness, space and tranquility with a nod towards a progressive life on the rise. The main floor living gets as much light as the upper family room, because its architecture is exceptional and creative with a score of skylights...think about that one on a 2-story, really? Not really, it's just amazing. The additional amenities of multiple work/relax spaces, indoor-outdoor living features, all Viking appliances kitchen with nana folding doors leading to a grand backyard of full-grown trees for privacy and built-in BBQ space for the ultimate entertaining space for your own peace of mind as well as the enjoyment of your guests. Situated high on the hill and featuring Parkalex, smooth stucco and molded cement to fortify the exterior, with the interior floating maple wood staircase, high ceiling foyer, Arabesque glass tile, floating sinks, floating cabinets and Carrera marble. Multiple tri-fold and dual fold almost floor-to-ceiling glass doors lead to polished tile floors with a seamless transition to the honed exterior tile grounds. Also prevalent are the perfectly placed bright shining skylights, a 76” built in flatscreen with jeweled fireplace and another turn-key fireplace with wood-tile surface."

1709 Reed St, Redondo Beach 90278

Also quite remarkable is this newer resale closing at $1,460,000 after being initially listed for $1,500,000. Not much off the mark of some recent larger new construction on Carver.


"High end modern home, built on a Street-to-Street property. High ceilings and well placed windows pair perfectly with this location to allow a ton of natural light in to the home and still maintains lots of privacy. On the ground floor, you have two bedrooms with a gorgeous bathroom and access to grassy back yard. The rear yard opens to an abundance of street parking (almost impossible to find in Golden Hills). On the next level you’ll find your main living area with two story ceilings creating an open and airy feel. The kitchen boasts a full Viking appliance package, high end modern cabinets and an eat in breakfast counter. The master has a large walk in closet, gas fireplace, and a balcony overlooking the backyard. The top floor is a loft/4th bedroom with a full bathroom and access to the rooftop deck."

2301 Pullman Ln, Redondo Beach 90278

Here's an example of a resale selling for more than new construction. Initially listed for $1,299,000 this unique property (oversized at 3000 Sq Ft +) was bid up to $1,340,000 which is a price point builders have had difficulty attaining for new construction in 90278.


"Timeless corner Townhome that feels like a single family residence. Bright & sunny open floor-plan with all the bedrooms on the second floor, each including their own private balcony & bathroom. This beautiful home has a thoughtful design. A kitchen made for cooking & ample outdoor space, with access of the main living areas. This is the perfect home for families of all ages. There is nothing like it on the market."

THREE ON A LOT NEW CONSTRUCTION

These next few really epitomize just how strong demand is. These are basically attached 3 on a lots selling for more than detached newer 2 on a lots would have a year ago.

2119 Grant Av # A, Redondo Beach 90278


With 4 bedrooms, 5 baths and 2304 Sq Ft of ultra modern luxury it is not totally surprising that this one closed escrow for $1,160,000. But we never used to say $1M, North Redondo and 3 on a lot in the same sentence. Presumably this is the new normal.

"New reverse floorplan attached Townhome. Open floorplan with high-quality finishes. Two bedrooms on the main floor plus a mezzanine and rooftop deck for each unit. A/C unit with smart “Nest” learning thermostat. Kitchen features BauFormat cabinets, Smeg hood and range, and Cambria counters. LED lighting throughout. The GoRave built-in sound system delivers high-definition sound for comfortable lounging and loud parties. American-made hardwood engineered oak flooring. Porcelanosa bathroom tile imported from Spain. Interior doors and built-in closets are custom-made. Central vacuum system. Incredible craftsmanship evident throughout out this home."

2002 Carnegie Ln # C, Redondo Beach 90278


Let's keep going. How does a 5 bedroom rear unit spanning 3 floors with a backyard sound for $1,195,000. Yes, a 3 on a lot.

"This new 2017 constructed town home is awesome. This home is built with an open floor concept with contemporary styling. At entry level 2 bedrooms with full baths have their own french doors leading to the private serene back yard. Continuing to the main level you will find yourself amidst the living room with fireplace and french doors to the balcony overlooking the backyard, dining room, and designer kitchen including Viking appliances. The Master with ensuite bath, 4th bedroom, 4th full bath, are also located on the Main level. The 5th bedroom is located on the 3rd level, private and secluded, complete with a full bath."

APRIL 2017 SALES NORTH REDONDO BEACH