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  • Year over Year Price increase in Home Sales in the Beach Cities

    Posted on January 16th, 2014 acimetta No comments

    If you’re interested in seeing the general trend in prices, here’s the latest from DQ News, comparing prices from October 2013 to October 2012 in the South Bay:

    Average Sales Price

    City                                         October 2013             October 2012                      Increase

    Hermosa Beach                  $1,399,000                 $835,000                             67.54%
    Manhattan Beach               $1,386,000                 $1,137,500                            21.85%
    Redondo Beach                   $747,500                    $700,000                              6.79%

    Redondo Beach had 70 transactions in October, the highest number of the three Beach Cities. Manhattan Beach had 40 and Hermosa had 24.

    The trend appears to still be going up. Inventory is still low, and there’s enough demand to continue to push prices up. I don’t think we’re going to see the frenzied pace that we saw in the beginning of 2013, but there will be plenty of activity.

    The real estate industry could be tapered by the new Qualified Mortgage standards (effective as of January 10th) which require a borrower’s debt to income ratio to be no more than 43%. Of course, this could just mean that the big lenders are going to continue to grab the lion share of the business since they are less impacted by the QM guidelines; they can hold on to their loans rather than selling them on the secondary market which is dictated by Fannie and Freddie.