Redondo Beach Market Update April 2019
IT’S ALL ABOUT THE 5
Market slowdown? What market slowdown?
After all the articles about a market shift and the bloviating from lots of writers (including me) about the emergence of a “Buyer’s Market”, well whoops. We’re kind of back where we were about a year ago. So what happened?
Mortgage Interest Rates went into a free fall recording some of the largest drops in the last ten years. As of early April, Buyers were getting quotes in the low 4s on 30 year fixed jumbo loans and in the 3s on the 7/1/ARM products provided they have easy files and 20% down.
So I guess the one thing we now know for sure is that the closer to 5% rates get, the fewer Buyers are interested. Low 4s, no problem.
The other driver, though less of a factor, is that rents are still very high and there’s not a lot of places to rent.
So, sales are up.
There were a total of 80 sales in Redondo Beach during March with 44 of those in North Redondo and 36 in South Redondo.
This compares very favorably to January and February which had 43 and 56 respectively.
During Q1 of 2018 there were a total of 169 sales, so we are actually 10 sales higher this year than last year. Like I was saying, what slowdown?
Redondo Beach Q1 2019 Sales
Let’s take a look at sales in each zip code and by micro market for April.
North or Artesia Blvd 16
South of Artesia Blvd 13
El Nido 9
Golden Hills 6
Hollywood Riviera 2
West of PCH 13
North of Torrance Blvd 10
South of Torrance Blvd 11
March Redondo Beach Sales by Micro Market
MEDIAN SALES PRICE | RANGES | DAYS ON MARKET | OVER UNDER
OK, “over under” is not a Real Estate metric, I just want to see if you are actually reading this.
The blended median sales price for Redondo Beach during March was $972,500. For North Redondo it was $922,500 and for South Redondo it was $1,077,500. That delta has certainly been closing over the years as N Redondo has become a lot more desirable.
For what it’s worth, the average sales price in 90277 was $1,060,729 and 90278 was $960,309.
Average Days on Market in 90278 was 36 and 90277 was 53.
Overall prices ranged from $410,000 up to $1,700,000. Both the high and low were in South Redondo Beach.
In North Redondo Beach, 18 homes sold for over the asking price while 21 sold for less than the asking price and 5 at the list price.
South Redondo saw only 6 homes get bid up over the asking price while 22 sold at a discount and 8 at the MLS price.
So, I stand corrected, there is an “over-under”.
WHAT’S HOT AND WHAT”S NOT
Three bedroom properties under $1M are very hot whether they are SFRs or Townhomes with the exception of the unit with high HOA dues. At these low interest rates, an HOA payment of around $450 is equal to about $100K of purchase price but it seems the differential of what Buyers may be willing to pay is more like a $200K or greater delta.
Properties that are turnkey whether they are resales or new construction in great demand. Homes needing updates, not so much so. Open spaces are loved by everyone, small cut up rooms, less desirable.
North Redondo has greater velocity than South Redondo because it is for the most part more affordable and is an easier commute for many people.
The desirability of Redondo Beach schools remains a major draw for families with school age children renting on the Westside.
TOWNHOMES | CONDOS | SFRs
Overall there were 17 condos sold, 41 townhomes, and 22 SFRs. Bear in mind that from a legal and lender perspective, a townhome and condo are the same.
WHAT YOU NEED TO KNOW
Inventory, pendings and sold remain very much in balance and indicate a Seller’s Market. As of this writing there are 113 active listings in Redondo Beach and 120 in escrow. Either way that’s about 1.5 months of inventory at the current run rate of 80 sales.