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.
Prices continue to go up in Redondo Beach. Case in point, 1625 Morgan Lane came on the market last week (brokered by KW). This is a 3 bedroom Tall & Skinny in the Golden Hills, close to Jefferson Elementary. It has been nicely remodeled. The kitchen has been redone, There are hardwood floors downstaris. And unlike most Tall & Skinnys, all the bedrooms are upstairs which is a huge selling point. The bathrooms were not remodeled, but are very clean. The biggest down side, in my opinion is that the living space (on the first floor) does not get much light. Anyway, it was priced at $759,000. In a few days, the seller had amassed 16 offers, going well over asking. I can reveal the final price once the property closes. This home is ultimately going to sell for more than it may even appraise at. However, the winning bidder may have removed the appraisal contingecny, eliminating this issue altogether.
A few more examples are:
1641 Ford Ave: Listed at $699,000. Sold at $720,000
1517 Stanford Ave: Listed at $739,000. Sold at $769,000. This was my listing. I had 4 offers and the winning bidder was all cash, no appraisal contingency.
1503 Stanford Ave: Listed at $759,000. Sold at $7990,000
1610 Van Horne Lane: Listed at $825,000. Sold at $840,000.
Buyers are being aggressive. If inventory continues to remain low, this marke could continue to rise. The question is are we creating another bubble?
I have a listing coming up in the Golden Hills at 1516 Stanford Avenue. It’s a 2 bedroom single family that offers a great opportunity for someone to get into the market at an afforable price point and then expand/remodel later. I will post photos soon!