While both the median and average list price in 90278 has been hovering around $1M for the last few months, we now seem firmly ensconced at $1M on a fairly consistent basis. But that's not what this post is about. What I'm going to be looking at is the disappearing price points in the $500K-$800K range. While this means that as a seller you may be able to sell your home for a higher price than before, there will be a smaller pool of buyers to pull from as affordability erodes even if North Redondo is currently the hottest coastal market in LA County.
As of this posting there are 45 properties for sale in 90278 with around 50 per month selling. So less than a month's inventory on hand. Definitely a seller's market.
For many years I described my business as properties in Redondo Beach between $600-800K. But with only 3 of the properties listed below $700K and 4 between $700-$800K, that market has more or less vanished. Today I would describe my typical North Redondo sale at between $800K-$1.2M and by next year at this time I expect we will see very little listed for sale under $1M in North Redondo Beach.
Let's take a walk down memory lane (no, not a local street!).
- August 2014 38 closed sales in North Redondo: 20 less than $800K
- August 2015 42 closed sales in North Redondo: 22 less than $800K
- August 2016 45 closed sales in North Redondo: 12 less than $800K
So what can you buy at the "entry" price point? Let's not count the few listings that are Redondo Beach Post Office / Torrance services (Kingsdale, Grevillea).
In the the low $600's you can get a 2 bedroom, bath such as either 1908 Grant Unit E or 2611 Vanderbilt Unit 2. Live in now and turn into rental units later as others have done.
When you get into the $700's you can start to see older 3 bedroom units such as 2014 Vanderbilt Unit 7. Please note, some of the larger older townhome complexes have higher HOA dues than the 3 on a lot townhomes. As a result we have seen faster appreciation in the 3 on a lots. The same comment holds for 2 bedroom units, typically in larger complexes with higher HOA dues. As the entry price point is more sensitive this has served to suppress some appreciation particularly as many associations have had to increase their reserve requirements over the past few years.
No let's look at some emerging price points within certain property types.
NEW CONSTRUCTION TOWNHOMES
Whether it is a detached 2 on a lot or an attached 3 on a lot, be prepared to budget well over $1M. You get a lot for your money and make no mistake, these homes are nice. Very nice.
Consider the $1.1M to $1.4M a new emerging price point for new construction North Redondo Beach townhomes. Let's take another stroll down our favorite street Memory Lane and see where we were just 2 years ago in 2015.
At that point you could buy a new construction detached two on a lot for around $1.15M. Today the comparable home is being priced at $1.4M.
The jump in 3 on a lot prices has been even more dramatic. In 2015 $800K bought you a very nice property. Today new 3 on a lots are selling for $1.1M and higher. The bottom end of new in this segment has become the previous top end because, well, people want new.
The take away is that sub $1M new has become the long disappeared price point and $1.4M is the new emerging top price for new.
NEW CONSTRUCTION TALL & SKINNYThe Golden Hills has seen dramatic price appreciation over all. Let's look at how new construction has fared.
In 2015 you could buy new construction at a little less than $1.1M up to $1.3M. Today you are looking at $1.450M.