HOT REDONDO BEACH PROPERTIES | SUMMERTIME HEAT WAVEI recently read that the average temperatures in July were among the hottest ever recorded during a July month in Southern California. Well at least according to the National Weather Service. How hot? Well trying calling an A/C installer. You might be able to get an appointment in October. If you are lucky. Very lucky.
Thankfully the heat wave did not keep Buyers at the Beach and we saw 40 closed escrows in North Redondo Beach 90278 which is a run rate number I would be very happy to see sustained for as long as possible.
As my readers know, I have been lamenting the rather soft start to 2018. Through the first six months there were only 223 closed escrows. So even a slight improvement is very much appreciated because as you can see below overall sales are down compared to prior years.
Let's take a deeper dive into the numbers.
MEDIAN AND AVERAGE SALES PRICES AND OTHER METRICS
The median blended sales price was $1,047,500 and the average sales price was $1,090,767. Median Days on Market was 11 but the average - pulled up by some properties that took quite a while to sell was 30 days.
The lowest priced home sold was $710,000 for a 1368 Sq Ft 3 bedroom 2 bath Townhome on Dufour. The highest price was $1.5M for a detached 2 on a lot new construction Townhome on Warfield. FYI, the new normal for detached 2 on a lots is around $1.5M and attached 3 on a lots around $1.2M.
Of the 40 closed sales 24 closed at or over the MLS list price16 below with 5 of those being new 2018 construction (which account for almost 25% of sales).
Here's a stat I frequently reference because it really is an indication of market strength and demand. Fifty percent of the homes sold in less than 10 days and of those 14 sold over the asking price with 3 going at the list price and 3 below.
For me, as an agent who has been at this for quite a while, 85% of the homes selling for at or above the asking price and in 10 days or less is just staggering. Not what anyone would consider a "normal" market at all.
WHAT'S SELLING AND WHERENorth Redondo Beach is in large part a Townhouse / Condo market with most of the SFRs found in the Golden Hills, El Nido, and the TRW Tract. During July only 9 Single Family Residences sold and ranged in price from $835,000 for a 2 bedroom one bathroom 945 Sq Ft SFR on Graham up to $1,400,000 for a new construction "Tall and Skinny" on Armour Ln that was on the market for 105 days.
Detached 2 on a lots ranged from $1,025,000 up to $1,500,000 and there were 8 sold. What I find interesting right now is that the high of 2 on a lots is exceeding the high of the SFR Tall and Skinnies. but not the newer traditional SFRs on 5000+ Sq Ft lots.
By MLS Area here's where we saw activity during July:
- MLS AREA 151 North of Artesia Blvd 16
- MLS AREA 152 South of Artesia Blvd 15
- MLS AREA 153 El Nido 3
- MLS AREA 154 Golden Hills 6
SURPRISNG TRENDSFor years I have been tracking new construction prices on this site and others. The reason is that all other factors being equal, no one would want to pay more for a resale property than new construction. Well until recently. While we didn't see it happen during July, other times this year I have noted this happening surprising as it may be.
Two on a Lot Townhomes in Redondo Beach
- As mentioned above, the "new normal" in 90278 for detached properties is $1.5M and anything below might well be considered a "deal".
- Additionally, the price delta between new and resale in N Redondo has been narrowing.
- We are also seeing all kinds of "inversions" on price per square foot calculations.
- Attached Units are making a comeback with 4 attached 2 on a lots closing during July.
Median Price Between North and South Redondo Beach NarrowingThe median price in S Redondo Beach 90277 for July was $1,190,000 and as noted above in N Redondo 90278 was $1,047,500. Last year during July of 2017 S Redondo was at $1,150,000 and N Redondo was $955,000. So N Redondo in absolute dollars increased almost $100K and S Redondo around $40K.
In fact, there is a case to be made that S Redondo Beach is under valued right now.
And speaking of looking back a year, there were the same number of sales in S Redondo, 34, as this year while in 2017 there were 53 sales in N Redondo compared to 40 this month. That's a huge difference in absolute number of sales and explains in large part the price acceleration and the very hot N Redondo Beach market.