The song remains more or less the same: inventory is low, prices and interest rates up. Many are wondering if we are approaching a tipping point and Buyers are getting ready to say no in droves or if the record high prices will cause more home owners to decide to sell. Time will tell. Meanwhile let's take a deeper dive into the February sales and some activity so far this month.
FEBRUARY 2018 SALES: UPComing off a disappointing January, closed sales during February were up in both North and South Redondo Beach. North Redondo saw 31 closed escrows up from 27 during the first month of the year. South Redondo had 21 sales which was a slight improvement from 19 last month. By comparison, there were 16 sales in Hermosa Beach which is much improved over the 7 in January. Manhattan Beach finished with 21 closed escrows compared to 19 the month before.
So, total Beach Cities sales for February were 89 which is a nice pop from the 72 in the prior month.
THE OVER / UNDERNo this is not sports betting. I like to track how many properties sell over, at, or below the MLS list price. Of course considering that many agents, including yours truly, price properties to sell quickly over the list price this metric may not be as useful as previously. I like it anyway.
During February, North Redondo Beach saw 18 properties sell above the MLS list price, 4 exactly at the list price and 9 below. A few observations about those numbers.
Surprisingly, of the 9 that sold below the list price, 5 were under $900K meaning that Buyers in that range may be more price sensitive than the higher price points. Why is that? At the higher price point Buyers may have been looking in Hermosa or Manhattan Beach, gotten priced out and see the value in NRB.
Of the 23 properties that sold 10 days or less on the market, 17 sold above the MLS price, 3 at the list price and 3 below. Between 14 and 30 days only 3 properties sold and 2 of those below the asking price, one above.
After 30 days on the market there were 5 sales and 4 of those closed below the list price. So if you are listing your home for sale in North Redondo Beach, best to price it to sell out of the gate.
In South Redondo Beach, 12 out of 21 sales sold in less than 30 days. Of those, only 5 sold at or above the ask with 7 going below. That follows the over all trend in South Redondo of 17 in total selling below the asking price. Best practice if you are listing your home for sale in 90277 is just price it right. Sellers seem to be getting ahead of the market for sure south of 190th St.
MEDIAN SALES PRICE: MIXEDThe median sales price of sold properties in North Redondo during February was $1,040,000 down slightly from the median in January of $1,065,000. Of the properties in escrow as of this writing, the median list price is $974,500 but assume many of those will sell over the asking price. For actives, the median is $1,049,500 with the same caveat.
For South Redondo Beach, the median active is $1,599,000. In escrow properties median list is $1,307,500. As for actual sales, the median in February was $1,265,000 up from $1,175,000 in January.
Beyond the numbers here's an important pricing takeaway.
Of the 78 active listings over all in Redondo Beach, 23 are less than $1M and of those 8 are under $750K including two in an age restricted (under 55) condo complex. We are on the cusp of any 3 bedroom properties being over $800K with the same being true of even the least desirable SFRs.
Needless to say, the above has long been true of Manhattan Beach and most of Hermosa as well. We are fast approaching under $1M as a "disappearing price point" in the South Bay Beach Cities.
On the flip side we are seeing.....
RECORD HIGH REDONDO BEACH PRICES BEING REACHEDDuring February both North and South Redondo Beach saw new record high prices attained.
In North Redondo Beach, we haven't quite broken $2M yet but there were two sales in the $1.9Ms exceeding the previous highs in the $1.8s and those were new construction. These were re-sales.
While you are still digesting that, how does $22,650,000 sound in South Redondo Beach? FYI, that is higher than any sale ever recorded (at least in the MLS) in Manhattan Beach. Really? Wow? Mind blowing.
The sale at 417 Paseo de la Playa included 2 lots so maybe not a fair comparison but even so, almost double the previous high of $6,500,000 for one lot on the same street.
Let's take a look at these.
417 Paseo de la Playa, Redondo Beach 90277
"With over 62,000 square feet of beach-front property on TWO SEPARATE PARCELS, this dramatic compound is almost impossible to duplicate. The main house (417 Paseo de la Playa) is over 10,000 square feet of exquisite living area, and the “companion house” (421 Paseo de la Playa) has over 5,500 square feet. Both homes are located behind gated entrances, both with direct access to the sand, a spectacular pool & spa, a private sand volleyball court, and a large yard. The views span from Palos Verdes through the beach cities, including the entire Santa Monica Bay. Some of the features include Geothermal heating and cooling, Crestron Home Automation System, Lutron lighting system, movie theater, home gym, wine cellar, elevator, pizza oven, back-up generator, closed circuit cameras, one 4-car garage, one 3-car garage, and much more. This spectacular property offers direct beach access, mesmerizing views, and perhaps most important… privacy. Located just 9 miles from LAX, this is a one of kind, legacy type property, not likely to be replicated in the South Bay."
Listed for $25,000 by Vista Sotheby's. Sold for $22,650,000 by Douglas Elliman CA.
2842 Pinckard Av, Redondo Beach 90278
"Live on one of the most coveted and friendly streets in the TRW Tract of Redondo Beach! This stunning and rare single-level home has star quality as featured on the hit TV show Extreme Make Over Home Edition and was fully remodeled in 2014. The 3529sq ft, 3 bed, 4 bath home is on a huge 8314 sq ft lot was crafted with functionality in mind. Recessed lighting is controlled by an intricate yet user friendly lighting system, making all lights easily operated from anywhere in the house. Hardwood floors span the open living space while light floods in from a crow’s nest. The living room offers a fireplace flanked by built- in storage. The kitchen w/ massive granite island and breakfast bar is ready for a chef w/ 6 burner range, wine refrigerator, double oven and abundant counter space. A hallway lined with glass doors opens to two courtyards with tons of seating room and a fireplace. The master bedroom boasts a stone fireplace, access to the patio and a spacious walk in closet. The master bath is luxurious w/ walk-in shower, ample cabinet space, double sinks & soaking tub. Down the hall are two more bedrooms with custom closets, as well as 3 bathrooms. The laundry room doubles as a mud room with access from the side of the house. A bonus room, currently being used as an office, opens onto the deck and could be a great 4th bedroom if needed. Take your pick of stairs or a wheelchair accessible ramp as you enter the detached 2-car garage with work bench and plenty of storage space."
2814 Timothy Av, Redondo Beach 90278
"Built in 2016 this beautiful 5 bedroom, 3.5 bath single level house is situated on an amazing 9,038 sq. ft. flat lot (btv). The home has a great open floor plan ideal for all. This house is completely private with all living spaces looking out to the expansive backyard. The family room features a beautiful fireplace, custom built cabinets, and vaulted ceiling with skylights. Large sliding glass doors lead to the outdoor entertaining area complete with a fireplace. The chefs kitchen has plenty of counter space including an over sized island ideal for entertaining family and friends. Enjoy the master suite retreat which includes a gorgeous bathroom with spa tub, separate shower and a large walk in closet. This great location is close to schools, parks, restaurants and freeway close."
BUYING REDONDO BEACH REAL ESTATEIf you are a Buyer in this market, expect extreme competition especially on well price listings and almost anything in North Redondo Beach. A recent listing (2107 Grant Ave pictured from drone at the top) put out by one of my team members of The Ellis Posner Group received 8 offers in 5 days and sold substantially above the asking price. Other properties my team has represented Buyers on have also have received 7-8 offers and were bid way up.
In South Redondo Beach it may be slightly less competitive for new listings. But if they are below a certain price point you will see the same feeding frenzy going on.
My advice to Buyers going after new listings is to be looking at properties coming out $50-100K less than where you want to wind up. After a home has been on the market a few weeks, that equation changes dramaticallu.