Here is a market update for the three Beach Cities, Redondo Beach, Manhattan Beach, and Hermosa Beach. The month of September had more inventory than any month in the past five years (excluding the summer months of 2016). September also had the lowest volume in sales as compared to any month in the past few years.
This slow down – of more properties sitting on the market and less properties being sold – can be explained by a few changes in the marketplace. First, buyers don’t have the same urgency to make a purchase. They have demonstrated more patience and are less likely to make an offer on a property that is less desirable. They are no longer submitting offers on every or any property they see. They are taking their time. Second, some sellers have priced their homes too high. With buyers coming to their senses, sellers can’t put outrageous price tags on properties any longer and expect them to sell immediately. Third, the market has been hit with properties that are less than desirable. These homes, that are impacted negatively by location or some other odd property feature, sit longer on the market as well.
What does this mean or buyers and sellers?
Buyers have an opportunity to get a good deal. They can afford to negotiate harder and demand more terms of a sellers. Case in point, more contingent offers are getting accepted. During the height of the market, a contingent offer was dead in the water. There were too many all cash or high down payment offers in play that a seller didn’t have to entertain a buyer who has to sell something first before they can buy.
Sellers need to make sure their homes are show-ready in order to garner as much money as possible for their properties. Buyers must have a strong emotional response to a property in order for them to make a strong offer. Sellers also should employ the proper pricing strategy or risk sitting on the market.
If you have any questions about this market update or need assistance buying or selling real estate, you can reach me at 310.428.8804