North Redondo Beach Real Estate Market Update: July 2017

June 2017 North Redondo Beach Sales



With both June 2017 sales and the first six months of the year now in the books we can start to answer the question "How's the Real Estate Market Doing?" And we now have some data points to help us makes sense out of things.

So, to put it simply, the Real Estate market is doing great - if you are a Seller. For Buyers, it may be more of a challenge.

The two major story lines of the last few years continue: persistent low inventory and (almost) historic low interest rates. The by product is record high sales prices vs record high rents and multiple offers and competition vs more Buyers entering the market. These work hand in hand fueling each other.

A few words about the persistent low inventory. You may read elsewhere that this is a broad problem on a national basis and it is. But in the markets I track North Redondo 90278 is by far the most in demand and competitive. By far.

It is quite possible that by next year at this time, with fe exceptions you won't be able to buy in Redondo Beach for under $1M. I see a possible runway of at least a few years before prices level off. This keeps many home owners in place and suppresses inventory. It also incentivizes Buyers to lock in properties now at a discount to their future value.

Here's a quick look at June sales and then we'll take a deeper dive into the year to date activity and current market snapshot.

REDONDO BEACH QUICK STATS June 2017

1900 Slauson Ln | Listed & Sold by Ellis Posner June 2017
  • 53 Total Sales
  • 28 Homes in Escrow 15 days or less
  • Lowest Priced Sale $575,000
  • Highest Priced Sale $1,407,500
  • 20 Sales Over $1M
  • 21 Single Family Residences Sold
  • 32 Townhomes / Condos Sold
  • Average Sales Price $968,408
  • Median Sales Price $940,00
  • Average Days on Market 22
  • Sold Over List Price 35
  • Under List Price 13
  • MLS Area 151 - North of Artesia Blvd 13 Sales
  • MLS Area 152 - South of Artesia Blvd 22 Sales
  • MLS Area 153 - El Nido 5 Sales
  • MLS Area 154 - Golden Hills 13 Sales

The 53 sales during June which topped the 49 in May, make it the strongest N Redondo sales month by far in 2017. The average sales price increased from $957,496 to $968,408 and the median increased from $927,500 in the prior month up to 940K in June.

Those are all great numbers (for Sellers) but what really jumps out at me is that 35 homes sold over the MLS list price compared to 23 in the previous period and the average days on market decreased from 40 to 22 while properties sold under the asking price declined from 20 to 13. For the year to date stats scroll to the bottom of this post.

For those readers who like charts how, here's an interesting one showing the relationship of the median days to sell compared to list price median. Pro Tip for Sellers: pricing is a strategy so price to sell - it will pay off. The longer your home is on the market the more likely you will not get "Full Market Value". Really!

Not that you've got that, let's take a deeper dive by property neighborhood and property type.

Redondo Beach Golden Hills

Golden Hills Homes for Sale

There were 13 sales in MLS Area 154 - Golden Hills during June: 12 Single Family Residences and one Townhome. Prices ranged from $758,000 for a 1026 Sq Ft house on Axenty up to $1,280,000 for a newer built (2014) 4 bedroom. The average sales price for June was $1,068,665 and the median was $1,090,000. On average homes were on the market for 13 days. Seven homes were bid up and sold over the asking price, 5 sold under and one at the MLS list price.

Unlike other parts of North Redondo, there aren't very many Golden Hills Townhomes. The one that sold, 1018 Palm Ln, is an oversized 1709 Sq Ft 2 bedroom that is in average condition for its age (1978). It was listed for $774,000 and sold for $770K after 8 days on the market. Great location - just steps away from Hermosa Beach and priced appropriately for the size per Sq Ft. Or put another way, you could spend the same amount for a 3 bedroom of the same size and vintage but much further east. Speaking of Golden Hills Townhomes, my new Townhome listing in the Golden Hills will be on the market July 12th. Scroll down for details on 1733 Aviation Blvd.

The standard Golden Hills Tall & Skinny home has seen huge appreciation of the last 18 months with many 3/2 reverse floorplan homes selling between $1.2M-$1.3M.

MLS Area 151 - North of Artesia Blvd

Reverse Floorplan Detached Two on a Lot

There were also 13 sales in this neighborhood: 3 SFRs and 10 Condo / Townhomes. Prices ranged from $630K for a two bedroom in the 2700 block of Voorhees up to $1,285,000 for a remodeled 4 bedroom SFR in the 2700 block of Robinson.

The average sales price in this neighborhood was $991,846, the median $950,000 and homes were on the market for 44 days. Eight properties sold above the asking price and 4 below.

A few comments.

The average days on market was severely distorted by a few new construction listings which were on the market for 263 and 269 days each. Removing those puts us at 14 days on market for the remaining properties with 9 going into escrow in 18 days or less. But.....we can't pick and choose just the data we like.

What I also saw is that once again the new construction "reverse floorplan" detached 2 on a lots are very tough sells in this neighborhood and specifically that Buyers do NOT value them any higher than new construction attached 3's. The example being 2606 Voorhees Unit B (pictured above).

MLS Area 152 - South of Artesia Blvd

Detached 2 on a Lot in North Redondo Beach

There were 22 sales in this area and for a variety of reasons you can expect that trend to continue with more sales here than the other 3 MLS Areas in North Redondo.

Here's why.

There is the most density with literally hundreds of 3 on a lots and older 6-10 unit 2 and 3 bedroom Townhome complexes. Most of these properties are also priced at what is still considered affordable or entry level for the Beach Cities. Closed prices ranged from $575,000 to $1,288,000.

The average selling price for June was 906,659 and the median was $865,000. The average days on market was 13. A staggering 17 of the sales sold above the asking price and only 3 below the asking price.

2017 Year to Date Stats January Through June

Tied for Most Expensive Sale Jan-Jun 2017
  • Total Sales 242
  • January 23
  • February 33
  • March 41
  • April 43
  • May 49
  • June 53
  • Average Sales Price $959,886
  • Median Sales Price $933,000
  • Average Days on Market 36
  • 167 Homes Sold in 30 days or less
  • Highest Price Sale $1,725,000
  • 94 Properties Sold Over $1M
  • 96 Single Family Residences Sold
  • 146 Condos / Townhouse Sold
  • MLS Area 151 - North of Artesia Blvd 77 Sales
  • MLS Area 152 - South of Artesia Blvd 91 Sales
  • MLS Area 153 - El Nido 22 Sales
  • MLS Area 154 - Golden Hills 52 Sales

Ellis Posner Sells Redondo Beach

Two of my Redondo Beach listings closed escrow during June. They are both great leading indicators of where the market is going.

Sold by Ellis Posner in Redondo Beach CA

2117 Huntington Lane Unit A

I listed this oversize Casner built property for $1,199,000 and it was bid up over $75K with multiple offers. This is a front unit attached 2 on a lot that I also previously sold in October of 2014. At that time it closed escrow for $1,079,000. This time around how does $1,275,500 sound? Closed on June 16, 2017. That's $196,500 over the previous sales price in 32 months for a gain of $6140 per month. That equates to 18.2% gain or 7% per year.

Pretty typical of a new trend I have been seeing in Redondo Beach: homeowners selling after 2-3 years of ownership and walking away with a nice profit. Most of these sales are driven by job relocations.

1900 Slauson Ln

This property was a resale 3 on a lot but instead of the usual configuration with a shared driveway, being on a N-S street this home had no common driveway. Although a 3 bedroom because it is oversize and an end unit, it was bid up from $849,000 to $880,000.

New Listing 1733 Aviation Bl

Aviation Villas Redondo Beach

Beautiful end unit situated in the rear of a private gated Mediterranean style Townhome complex located at the border of Redondo and Manhattan Beach: Aviation Villas.

Flexible floorplan with two bedrooms including the master located upstairs and the third downstairs. The Master Bedroom features a large walk in closet, private balcony and a beautifully finished master bath with dual sinks and a jetted tub. The kitchen, dining room, living room and a 1/2 bath are located on the main level. The kitchen features custom cabinets, granite counter tops and stainless steel appliances while the living room boasts a fireplace and a private patio area. Gleaming cherrywood floors, crown moldings, stainless steel fixtures, dual pane windows, air conditioning and a 2 car direct access garage. This is a wonderful opportunity for a newer built property in the Golden Hills section of Redondo Beach.

3 bedrooms, 2 on the same level. Each bedroom has its own bathroom. Private patio.

Priced to sell at $749,000