February Redondo Beach Market Update

This is a different market for sure. Mortgage interest rates are on the rise, inventory down, buyer demand up, prices up but sales down.

January 2018 Sales: Down

January is usually a slow month and this year was no exception other than being slower than usual. In North Redondo Beach 27 homes were sold and in South Redondo 19. Hermosa Beach had only 7 sales. Yes, seven, not a misprint and Manhattan Beach finished with 19. That brings the sum of all Beach Cities January sales to 72. A year ago there were 80 Beach Cities sales during January so yes, sales are down 10%.

February Month to Date: Under Contract Up

Through 28 days in a short sales month there are 17 closed sales in North Redondo Beach, 10 in South Redondo, 13 in Manhattan Beach and 9 in Hermosa. So at a minimum we know Hermosa Sales will be up compared to January.

Now the good news.

There are 49 properties "under contract" meaning in escrow in North Redondo Beach, 34 in South Redondo, 39 in Manhattan and 24 in Hermosa Beach.  That should lead to a good March and February on par more or less with January.

Problem is that persistent low inventory.

Median Sales Prices

The median sales price of active listings in North Redondo Beach is $1,095,000. In South Redondo it is $1,620,000. Hermosa Beach is at $2,024,000 and Manhattan Beach median active listing price is $2,875,000.

Market Forces

We haven't fully absorbed what the effect of the new tax laws and increasing interest rates will be on housing prices. People still need someplace to live and both the economy and employment are strong.