I just sold 602 S Broadway, #A Redondo Beach, CA 90277. It’s a lovely 3 bedroom front unit town home in South Redondo, just a few short blocks to the beach and close to Rivera Village. We closed yesterday and my clients can’t wait to start enjoying life at the beach! They purchased the property for $1,175,000 – 9% below the asking price. This home was a great buy for several reasons. The location is amazing. It’s a 3 bedroom, but the floor plan will allow for a 4th bedroom and additional square footage which will help build equity in the coming years. The traditional floor plan gives this town home the feeling of a single family home. The sellers did a good job maintaining the home and with some updating to current styles, this property should continue to increase in value.
North Redondo Homes Sales August 2013
Seventeen homes sold in August 2013 in Area 151 in North Redondo. This is 2 less than the number of homes sold in July, and 4 homes less than sold one year ago in August 2012. In most cases, it has continued to be a sellers’ market although buyers still have the advantage of buying homes at prices below the peak of the bubble and at low interest rates.
New construction is still a good buy considering you can spend the same (and even more money, in some cases) and get a town home that is up to 7 years old. Most homes are still selling quickly… many within the first week. And this translates into offers coming in immediately followed by a couple of days of negotiations before an offer is accepted.
One of the sales that really surprised me is 2144 Perry Ave. It’s a single family that had an addition. It does have a lot of square footage, but there is only a one car garage and it’s lacking in the quality department. this one sold for $1,115,000. This surprised me and many of my colleagues, but it showed that buyers are still feeling that desperation to get in the market and ultimately willing to pay a premium.
Address Sq Ft. Lot Year B/B DOM Sold Price Original List Diff
2219 Curtis Ave, #C * 1,060 7,499 1975 2/2 7 $464,000 $499,000 -7%
1900 Voorhees Ave, #B * 1,471 1987 2/3 6 $553,000 $495,000 +12%
2512 Gates Ave, #B * 1,610 7,526 1999 4/3 48 $667,500 $663,999 +.5%
2811 Barkley Lane 1,064 5,872 1947 3/1 21 $669,000 $669,000
2225 Mathews Ave, #C * 1,718 14,687 2000 3/3 8 $700,000 $649,000 +8%
2223 Voorhees Ave, #B * 1,955 7,504 1981 3/3 8 $708,000 $700,000 +1%
2415 Thomas Ave 1,590 6,550 1945 4/2 49 $722,150 $724,900 -.4%
1918 Ruhland Ave, #B * 2,477 7,513 1987 3/3 0 $725,000 $725,000
1921 Nelson Ave, #A * 2,054 7,480 1990 4/3 56 $750,000 $775,000 -3%
2116 Plant Ave, #A * 2,050 6,655 1989 3/3 5 $817,500 $799,000 +2%
2205 Nelson Ave, #B * 2,387 7,495 1986 3/3 34 $820,000 $769,000 +6.5%
1913 Nelson Ave 2,180 1959 4/3 49 $828,000 $859,000 -3.5%
2003 Curtis Ave, #A * 2,085 7,501 1990 4/3 9 $830,000 $779,000 +6.5%
1914 Ernest Ave, #A * 2,300 7,500 2004 4/3 1 $910,000 $910,000
2109 Plant Ave, #B * 2,357 7,504 2006 4/3 11 $930,000 $929,000
2021 Gates Ave, #B * 2,508 7,481 2013 4/4 1 $959,000 $959,000
2204 Plant Ave, #A * 2,500 6,645 2007 4/3 6 $959,900 $959,900
2144 Perry Ave 3,134 7,509 1947 5/4 14 $1,115,000 $1,150,000 -3%
Just got an accepted offer on 602 S Broadway, #A! It’s a custom built townhome in South Redondo just a few blocks to the beach and close to Riviera Village! It has 3 beds and 2.5 baths with 2,355 sq. feet. There are 18″ ceilings in the living room. This home is light and bright and feels welcoming the moment you step inside.
204 N Lucia Ave, #B in South Redondo just came on the market. I previewed it today during Brokers’ Open. This Cape Cod style rear unit townhome has a cheerful, lovely ambiance from top to bottom. Dark wood floors and white walls give it a crisp, clean look. You just want to make yourself at home!
There are ocean views from the deck off the top floor family room. There is a cute, manicured backyard accessed off the main living level. It doesn’t feel like a typical townhome. It’s nicely upgraded and I’m sure this one won’t last long. It’s my favorite listing of the day!
For the past several months in the South Bay, we’ve been experiencing a frenetic market where listings are sold in days, if not hours. If you blink, you miss them. Multiple offers on properties have effectively pushed prices up quickly. And there is no sign of a slow down yet. With that being said, this is a great time to be a seller. If you’ve been thinking about selling, you may want to take advantage of this climate: very little competition and desperate, aggressive buyers.
If you wait too long and put your home on the market when everyone else does, then buyers will have their pick of their homes and prices will begin to stabilize. However, if you remain ahead of the curve, you will benefit from this buyer frenzy we are experiencing.
If you would like to discuss your options in more depth, don’t hesitate to contact me at 310.542.9054.
The chart above represents the Properties for Sale vs. Sold Properties vs. Properties in Escrow (pending) in North Redondo (zip code: 90278) for the time period of December 2012 – May 2013. You can clearly see that the number of homes for sale have not been able to keep up with the homes sold.
Here are some recent facts pertaining to the real estate market:
1. In May, 40% of Americans said it was a good time to sell a home, up from 30% in April and 16% a year before, according to a survey from mortgage giant Fannie Mae.
2. U.S. home prices jumped 12.1% in April year-over-year, marking the 14th consecutive month of gains, market researcher CoreLogic says.
3. Nationwide, the supply of homes for sale in April was up 4% from January, when adjusted for seasonal patterns, says Jed Kolko, chief economist for real estate website Trulia.
To see the full article go to http://www.usatoday.com/story/money/business/2013/06/10/americans-home-selling-fannie-mae-survey/2409835/.
Because prices have started to rise, and in some cities at a quick pace, sellers are starting to feel that this is a good time to sell. If we start to get more inventory, we may see a more balanced market and prices could slow down. Until then buyers will continue to push prices up as they compete for properties.
In Manhattan Beach, Hermosa Beach and Redondo Beach, we can see prices increase from one week to the next. As each property is sold, a new bottom is set. Buyers who consistently miss out on properties to stronger bidders learn that they have to be overly aggressive in order to get their offer accepted. Buyers are coming in with all cash, large down payments, and they are offering well over the asking price. Appraisals are being waived. Contingency periods are being shortened. The one thing that can slow this down right now (all things being equal) is an increase in inventory.
723 N Paulina in South Redondo Beach is still on the market after two months. It was originally priced high in the $3.2 ballpark, but was reduced to under $3 million and will be reduced again shortly. This property offers a rare opportunity in this crazy market to get a deal. The home is beautifully appointed; the details are exquisite. The layout uses the 4,200 sq. feet exceptionally well. But what makes this home special are the views from both the first and second levels. And it gets even better from the rooftop deck. Because of the incline on the 700 block of North Paulina, these homes are a walk to the beach, but still enjoy views that would make Malibu residents jealous. This is a not-to-be missed home.
Here are home sales for North Redondo Beach, Area 151 (located north of Artesia Blvd and south of Manhattan Beach Blvd.
|Address||Sq Ft.||Lot Size||Year||B/B||DOM||Sold||Original List||Variance|
|2120 Dufour Ave, #18 *||1,368||45,019||1975||3/2.5||45||$499,000||$520,000||-4%|
|2224 Bataan Rd, #2 * (S)||1,350||7,508||1980||2/2.5||7||$501,500||$465,000||+8%|
|2000 Mathews Ave, #2 *||1,238||11,256||1977||2/2.5||8||$505,000||$479,000||+5%|
|2105 Mathews Ave, #7 *||1,972||22,498||1978||3/4||28||$620,000||$625,000||-1%|
|3506 Rindge Ln||1,082||4,095||1952||3/2||38||$630,000||$599,000||+5%|
|2000 Voorhees Ave, #9 *||1,758||15,017||1952||3/3||75||$633,500||$639,000||-1%|
|3506 McBain Ave||1,318||6,092||1950||3/2||9||$685,000||$669,000||+2%|
|2516 Gates Ave, #A *||1,818||7,511||2006||3/2.5||42||$715,000||$720,000||-.5%|
|2020 Nelson Ave||1,349||3,331||1961||2/2||15||$725,000||$689,000||+5%|
|2006 Bataan Rd||1,503||7,503||1948||2/1||46||$725,000||$750,000||-3%|
|1910 Ernest Ave, #B *||2,113||7,505||1988||4/2.5||58||$740,000||$769,000||-4%|
|2301 Nelson Ave, #A *||2,212||6,295||1992||4/2.5||28||$820,000||$779,000||+5%|
|2418 Gates Ave, #A *||2,316||7,485||2003||4/2.5||23||$835,000||$834,995||0%|
|2204 Phelan Ln *||2,621||7,322||1990||4/4.5||5||$845,000||$799,000||+6%|
|1924 Nelson Ave, #B *||2,480||7,500||2008||4/2.5||8||$900,000||$899,900||0%|
|2015 Graham Ave||2,795||5,177||2006||5/3||8||$1,195,000||$1,149,000||-4%|
|1906 Gates Ave||3,380||5,399||2013||4/4.5||5||$1,250,000||$1,250,000||0|
Homes are moving quickly. 75 Days on Market is the longest any one of these properties sat on the market before the seller accepted an offer. Many of these listings sold within a week. And there were some that sold in 2-6 weeks. More often than not buyers are seeing homes come on the market only to disappear in days. There is still high demand with little inventory. If you’re a buyer, I advise you to put your best foot forward. This is not a market in which you can come in low and negotiate with the seller. You have to compete with other aggressive buyers. You may not even get a chance for a counter offer.
Tips On Making A Stronger Offer
1. If you are financing the purchase, making as a large a down payment as possible is important.
2. Making a 3% good faith deposit always shows that you’re a serious buyer. You can increase this deposit. (The good news is that the contract limits your liquidated damages to the 3% so anything over would come back to you if you were in breach of contract.) If you really want to make an impression, you can release the deposit to the seller immediately. But keep in mind that if you cancel, you are walking away from this money.
3. Waiving the appraisal contingency. If you love the property and you don’t mind paying a premium, then agree to waive the appraisal contingency. If the appraisal comes in lower and the bank will only lend a certain amount, then you will be responsible for coming out of pocket for the balance. This is a great tactic in a seller’s market, because the seller doesn’t have to be concerned with taking a high offer that might not appraise.
4. Paying for seller’s costs. You can offer to pay some or all of the seller’s closing costs such as escrow fees, county and city transfer taxes, termite work, title insurance, etc.
Redondo Beach Home Sales
To follow up on my blog post on May 16th, the market is continuing to go crazy. All the listings that I earmarked 2 weeks ago: 2500 Ruhland, 2204 Plant, #A and 1933 Gates Ave, #B have all gone into escrow. 2500 Ruhland was on the market for a total of 7 days before it went into escrow. High tension wires not a deterrent; this home will sell for full price or over asking. 2204 Plant Ave, #A is in escrow after 24 days and 1933 Gates Ave, #B sold for $968,000 ($19,000 over asking). More and more 4 bedroom town homes in North Redondo are hitting the $900,000 and higher mark. We’re experiencing a quick and steep increase in prices. Hopefully, it will encourage more people to put their homes on the market in order to meet this pent up demand.
New Listing in Redondo Beach
1909 Morgan Lane, #A is another test of the market. This is a 4 bedroom detached town home (front unit) that came on the market today. It’s a clean 1992 build with some updates. It doesn’t have the beautiful detailing that some of the newer town homes have. And the bathrooms are not redone; they have the original tile counters. The sellers are asking $811,000. Are buyers so desperate that this second tier (in quality) town home will be bumped into the $800s? Or is there a limit to their madness?! We shall see.
Home Buyers’ Frustrations
What I can tell you is that many buyers are frustrated because they feel themselves being priced out of the market. I tell my clients who have missed out on a number of properties (and they have been aggressive in their offers) that they just need to stick with it. Everyone is feeling the pain; it’s not just them. It just takes time. The good news is that even though prices are going up, interest rates are still extremely low. And increase in price has less impact on your monthly payment, then an increase in price does. There is also the option to look for properties that may need some more work. You can buy something less expensive and then remodel it to your tastes. And these properties may have fewer people bidding on them since they are not turnkey.
We had Brokers’ Open today in Redondo Beach. There were a decent amount of things to see! Such good news when we have so many buyers competing for properties. My favorite listing of the day was 2018 Voorhees Avenue in North Redondo. It’s a 2006 built 4 bed/3.5 bath detached town home. It has beautiful details throughout. There is a family room at the top of the stairs (which makes all the bedrooms slightly smaller, but with the 2400 sq. feet the rooms still feel spacious). There are also 2 bathrooms in the hall at the top of the stairs which is unusual for this floor plan. The master bathroom is well laid out. There is a fireplace in the master and in the living room. And the backyard has a lovely patio with a pergola that creates an intimate, inviting space for entertaining. This property is listed at $899,000 and should move pretty quickly.