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  • 405 S Gertruda Ave, Redondo Beach – Real Estate Analysis

    Posted on March 14th, 2014 acimetta No comments

    405 S Gertruda Avenue in South Redondo Beach has been on and off the market over the past few years. It’s a lovely home with a lot to offer. And yet it hasn’t had an offer that has sealed the deal. This gives us an opportunity to look at one property over 3 distinct time periods in the South Redondo Beach real estate market.

    Here’s the history: The home was purchased in September 2005 for $1,480,000. As we all know, this was a market on an upswing. Sellers could do no wrong. Homes sold themselves and prices climbed quickly. Then in January 2010, the homeowner put the home on the market for $1,765,000. It was on the market for approximately 3 months. It didn’t sell, and not surprisingly. The market had pretty much come to a stand still, and in many cases prices had dropped back down to 2005 levels. There was no way this home would sell for $300,000 more than what it sold for in 2005 – not in this market. And it wasn’t going to sell at $1,685,000 later in the year when it was put back on the market again.

    Fast forward three years, and the home was listed for sale in July 2013 for $1,875,000. This was in the middle of a very hot market. But it’s also been a fickle market. Buyers have gone gangbusters on many properties and activity is rather subdued on others. And South Redondo seemed to languish behind North Redondo, Manhattan Beach and Hermosa Beach. After four months the listing was canceled. And now, in March 2014, it’s back on the market for the same price.

    Is there going to be anything different this time? One of its neighbors, 413 S Gertruda, sold in October 2013 for $1,700,000. It’s newer but smaller by about 500 sq feet. If 405 S Gertruda ultimately sells close to its asking price, then we are still in a very upward mobile market. But based on this recent comp, I would deduce that the value is below the $1.8 mark and not above it.

    405 S Gertruda shows very well. The views are gorgeous and the roof top deck is extremely usable. I’m not a fan of all the spiral staircases. (Loved them when I was a kid… could run up and down them all day long. But now I just get an awesome case of vertigo.) The neighborhood views are also picturesque. The kitchen is beautifully updated. The master bathroom is lovely. This house gives you a lot of space on a great street with great views. But it’s my feeling that it’s going to need to come down in price before someone is ready to step up to the plate. With that being said, there have been plenty of people stepping up this past year, setting new benchmarks. Only time will tell.

  • Testing the Strength of the Redondo Beach Market

    Posted on May 16th, 2013 acimetta No comments

    Inventory in Redondo Beacn (as in all the Beach Cities) is still low. Multiple offers are running rampid. Prices are being pushed up. The question is how high will they go – or in other words, how desperate are buyers? There are certain properties that test the waters for us – that show that buyers have gone a little crazy, and the market is getting over-inflated. One of those properties is 2500 Ruhland. It’s a beautifully remodeled town home. It has 2800 sq feet with 4 bedrooms and 3.5 baths. With these stats alone, I absolutely agree with the price point of $899,000 in our current market with the most recent sales as comps. But the location is two doors away from the high tension power lines, locating it in the eastern most part of North Redondo. If this town home sells close to or above asking, I believe we’re experiencing an inflated market that will later be referred to as another bubble, albeit, a smaller one. Another town home that’s pushing the envelope is 2204 Plant Ave, #A. It’s an attached town home built in 2007. With 2500 sq feet and 4 beds, 2.5 baths, it’s a nice property that shows well. It’s potential downside is that it’s located across from Lincoln Elementary. The street gets congested with the loading and unloading of kids every day. Again, I like this property; It shows wells. But keep in mind, it sold in May 2008 for $830,000 and now they’re asking for almost a $100,000 more at $924,500. We’ll see if they get it, and if it is, this market may really be out of wack. There is always the possbility of sustainability in the market, but I think that the current pressure buyers are feeling right now are and the low supply is propelling the market at a much faster rate than what the industry experts were expecting for the next several years. One last property to earmark is 1933 Gates Ave, #B with the asking price of $949,000. I will keep you posted as additional data becomes available and I can further analyze which way this market is trending.