Redondo Beach Market Update March 2019
NOT THE MARKET YOU THINK IT IS
With 2 months of sales in the books for 2019, all I can say is “hold on”.
Well I can probably say more than that. A lot more, so here goes.
I am seeing 2 divergent trends. Some properties continue to get multiple offers over the asking price and go into escrow in less than a week. They may not get the dozen or so offers we were seeing during Spring 2018 but 4-5 is not uncommon.
On the other hand there are homes, which seem to be reasonably priced, lingering on the market. Why? What’s going on?
Buyers in 2019 are going all in for homes that:
Are Priced Right and Presented Well
Have Desirable Features
And Are Turnkey
Which explains why we are seeing some record new highs for new construction.
The homes that are dated and don’t have any updates or with bad floor plans, location, or are over priced are just ignored. Big time.
Some Buyers are also mistaking the market strength while others get it. Interest rates are somewhat lower than they were a few months ago and there is definitely a case to be made for jumping in while the rates are low.
Let’s take a deeper dive into some numbers.
JAN-FEB NORTH REDONDO 90278 SALES
During January there were only 16 closed sales in North Redondo which is the lowest number I can remember in, well as long as I have been doing this (selling real estate). February was a lot better with 28 closed sales. Now here’s the problem. The total sales of 44 sales for 2 months would represent one good month in “normal” times. For quite a number of years N Redondo was running at around 500 sales per year. So anything over 40+ puts us on that track.
Speaking of which, during 2018 there were 58 sales during the first two months in 90278. So a decline of about 25% in number of homes sold.
Of the 44 sales, literally 25% (11 homes) were new construction. Prices for new construction ranged from $1,030,000 up to $2,000,000. Yes, $2M in North Redondo. A new record. The median price for new construction was $1,435,000 and the median price per Sq Ft was $556.
For resale properties, the median price was $899,000 and the median price per Sq Ft was $530 which is surprisingly close to new. But as I often say, price per Sq Ft can be misleading at best.
Twenty four homes sold below $1M and 20 above $1M with 9 being above $1.25M.
There were 14 Single Family Residences sold with the balance (30) being Condos / Townhomes.
New construction 3 on a lots come out priced at $1.25M and up. Two on a lot Townhomes $1.45M up, and new SFRs, well we’re looking at $2M.
For resales, end unit two on a lots are still in the $900’s but middle units are all over the place from the low to very high $800’s.
The nicer standard Golden Hills Tall & Skinny SFRs seem to be trading around $1.25M but there may be a sale of one currently in escrow that will top $1.3M this month. The smaller houses are usually under $1M today.
Breakdown by Property Type
Here’s Some North Redondo Beach Homes that Sold Jan-Feb 2019
JAN-FEB SOUTH REDONDO 90277 SALES
January was one of the few months when there were more properties sold in South Redondo Beach than in North Redondo. For January there were 28 South Redondo Sales and for February 29. So South Redondo is beating North 57-44 YTD as well as the same time period in 2018 when there were only 40 sales in South Redondo.
Sales ranged from $539,000 for a 2 bedroom condo in Brookside Village up to $4.2M for a 4,000 Sq Ft SFR on Paseo De La Playa. The median sales price was $1.1M.
Unlike N Redondo where new construction was 25% of the sales, there were 9 new homes sold in S Redondo equaling about 16%.
Four of the new construction properties were at the One South complex being built at 1920 S Pacific Coast Highway. If that project isn’t on your radar, it is a mixed use community with 52 units including flat condos and multi level townhomes.
The highest priced new SFR went for $2.980M. For townhouses 928 S Juanita sold for $2,150,000.
Pricing in South Redondo is somewhat more fragmented than North Redondo. Older properties that are dated seem to sit on the market longer and anything with an ocean view remains highly desirable.
The Avenues and anything around Riviera Village are still in high demand but the area north of Torrance Blvd is getting more activity than we saw previously.