I apologize for being late with the November home sales figures for the South Bay Beach Cities. I'm currently working on year over year numbers for all the Beach Cities and will post after I get December home sale figures.

After the dismal home sale figures for the last quarter of 2008,  home sales for the 4th quarter of 2009 are looking very good.  Inventory is well below the figures we became accustomd to earlier this year.   Many homes were taken off the market when the owners decided to stay put as they couldn't get the price the wanted/needed .  Others were rented  as sellers had to make new decisions about their real estate portfolios.  Still others sold after sellers found the right price to gain the interest of buyers.  All in all the last 3 months have been interesting as folks try ot decide if the bottom of the market is near or if this continuing  sales trend is just another blip in the road.

South Bay-Beach Cities: Sold November 2009

South Bay-Beach Cities: Sold October 2009

South Bay-Beach Cities: Sold September 2009

South Bay-Beach Cities: Sold August 2009

The signs are up and the ads are running as  360 South Bay  is giving it another try.   The trees are bigger,  the models are a year older and there is a new entrance sign, but not much else has changed since I was last here in March of 2008 when 360 South Bay closed the gates.  Prices will not be publicly available until the project officially re-opens in February 2010 but they should be a lot less then the prices the developer sought back in July of 2007 when the project first hit the market.  Expectations of getting almost a million dollars for units near the 405 Freeway were not very good back in '07 and  are even worse today.  Hopefully the builder has learned a few lessons about location, location, location.

There have been a lot of changes in the South Bay real estate market since this project officially opened in  July 2007 and quietly closed up shop in March 2008.  Prices have declined across the board  in all the South Bay cities but especially in the communities east of  Manhattan Beach, Hermosa, Redondo and El Segundo.  Financing is now  far more difficult to obtain then it was in the summer of 2007.  In fact unless William Lyon homes has made arrangements for in-house financing, that is not dependent on FHA, Fannie Mae or Freddie Mac underwriting, they may find it will take a long time to sell out the project..

One of the biggest casualities in the housing market has been condominium financing.  While obtaining a jumbo loan can be difficult,  obtaining financing on a new condominium project is even tougher.  A large part  of the losses lenders had in the Nevada and Florida markets were in condominium developments.   With these losses in mind  FHA along with Fannie Mae and Freddie Mac have issued some tough rules about loans issued on condominium projects.   The recent changes in  guidelines by FHA and conventional lenders backed by Fannie Mae and Freddie Mac are going to have an impact on the project as prices should fall within the conventional loan range of $729,750 or less.

FHA Guidelines:

Having a project  FHA  approved allows the developer to tap a larger pool of buyers as the down payment requirement  is less for FHA loans then conventional loans.  However recent changes issued by FHA in October 2009 have made it more difficult to obtain FHA financing on large new projects.

1. There will be NO more spot approvals after February 1, 2010

2. All development not considered primarily residential are out. For instance, a development with more than 25% of the total floor area dedicated to commercial business use is out.

**3. Noise issues is a new concern, so any development within 1,000 feet of a highway, freeway, or heavily traveled road, 3,000 feet of a railroad, 1 mile of an airport, or 5 miles of a military airfield will become ineligible for approval.

 4. If the property has an "unobstructed view , or is located within 2000 feet of any facility handling or storing explosive or fire prone materials, it is not insurable - we're not talking just fireworks factories here. A gas station 2 blocks away can disqualify this development.

 5. Any property located within 3000 feet of a dump, landfill, or superfund site, is ineligible.

6. No more than 10% of the properties can be owned by a single investor, including builders or developers who are renting out or have not yet sold vacant units. For 2-3 unit developments, no one can own more than one unit.

 7. No more than 15% of the homeowners can be more than 30 days late on their homeowner dues.

 8. For new developments, at least 30% of the units must be sold prior to applying for FHA approval (valid presales include those with purchase agreement and lender validation of an approved loan in process)

 9. A minimum of 50% of the units must be owner occupied or sold to owners who intend to occupy as their principal residence.

10. Projects in designated wetland and flood zones will not qualify.

11. All current condominium project approvals will be invalid (with the exception of projects approved on or after October 1, 2008) and projects must be re-approved under the new options available. Going forward, all projects will require recertification every two years.

Conventional Condominium Loan Guidelines:

In addition to changes in the general guidelines issued in the summer by Fannie and Freddie,  there are additional guidelines  for condominium projects seeking loans of $729,750 or less:

1. For new construction and converted new condo developments, 70% of the units must be pre-sold (closed or under contract). This is a tough requirement for most projects.

2. No more than 15% of a condo project units can be more than 30 days delinquent on HOA dues. This is an existing guideline that is now being applied to new condo projects. The calculation was also changed from being 15% of HOA fee payments to 15% of total units.

 3. Fidelity insurance will be required for condos with 20 or more units, ensuring that homeowner association funds are protected. Presently, this requirement applies to new projects and is now being extended to include established condos.

4. A requirement that borrowers must now obtain a condo-owners insurance policy unless the master policy provides interior unit coverage; coverage may not be less than 20% of the assessed value. A condo-owners policy, known as an HO-6 policy, covers personal property, personal liability, and the physical unit from the studs and in. Many policies also include special assessment coverage or the option to include a special assessment coverage rider.

5. No more than 10% of a project can be owned by a single entity.

 6. No more than 20% of a project can consist of non-residential space.

7. The homeowners association must have at least 10% of its budgeted income designated for replacement reserves and adequate funds budgeted for the insurance deductible.

8. Buyers without at least a 25% down payment will have to pay closing cost fees equal to 0.75% of their loan, regardless of the borrower's credit score.  Buyers with  20% down will need a credit score of 620 or more with a total overall debt ratio 45%  or less of gross monthly income.  The FICO required for the best rates has increased to 750 from 720.  Depending on your FICO score there are additional fees  that can be as high at 3.5% of the loan.

Pricing is going to be a huge factor.  Last time around the development was priced well above market value based on the location.  This time around prices have declined enough in the Beach Cities that buyers may not be willing to pay a high price for new construction in a less then desirable location near the freeway.   Beach close is not Aviation and El Segundo Blvd. While there are many buyers who will exchange new construction for location,  in the long run location remains the #1 factor in sustaining home value.    The last new development in out area was Fusion on Aviation and Marine. Fusion remains a popular community as it is very close to Manhattan and Hermosa but  prices are significantly less then in the Beach Cities.

The project is technically in El Segundo but the school district is Wiseburn and Hawthorne not El Segundo.  While the development is being pitched to young singles looking for a Beach lifestyle  rather then families, the school district is still of major importance in establishing value.  Time is fleeting and it might not be long before the young singles find themselves married with a growing family.   Wiseburn schools are  good at the elementary/middle school level,  but once children reach  High School then students go to Hawthorne High School although if Wiseburn has its way there will be a Charter School for High School students.

There are going to be a lot of nice amenities at 360 South Bay including a full gym, pools and lots of recreation choices.  Large new construction  developments are something we don't have much of in the South Bay as the bigger parcels of land were built out long ago.  Inventory is low in most of the South Bay communities and especially in the Beach Cities.  I suspect that this time around there will be more interest in the project providing it is priced right.  Today's buyers are very cautious and smart about the housing market.  Many have been following the real estate market closely for a long time.  They know how much they will and won't spend on a home purchase.  Glitzy ads proclaiming  beach close won't have much effect on savvy buyers who know exactly where the beach is in the South Bay.

. **  Item # 3 on the list above may be the deal breaker for FHA financing approval on the project which means that all potential buyers will need large down payments and will be paying an additional 3/4 of a point in interest.

*** As of today I couldn't find 360 South Bay included on the list of Fannie Mae approved projects.  It may mean that the development is still under review.

In 2006 Joe Ferrara and Rudy Bachraty , when blogging was just beginning, decided to name the Top 10 Women Real Estate Bloggers for 2006.  In 2007  and 2008 the list grew to 12 Women.  These women are chosen from all over the United States.  It is an amazing honor to be part of this special group of women. 

This year I am very excited to be among the 12 Top Women Real Estate Bloggers in the United States.   I am still stunned and amazed and thrilled to be chosen along with  these 11 amazing Women Real Estate Bloggers:

 Colleen Kulikowski Buffalo New York 

 Mary Pope-Handy in the Sillicon Valley

 Dru Bloomfield from Scottsdale AZ

 Diane Guercio founder of The TwitterQueens,

Amy Chorew truly a Tech Queen

 Jessica Riffle Edwards from Wilmington North Carolina

Susie Blackmon another North Carolina blogger with some great insights

Elaine Reese from Central Ohio has lots of sweet information  

Gena Riede  The Sacramento  Real Estate Voice of experience, 

 Kim Wood from Philadelphia loves photography,

 Monika McGillicuddy from New Hampshire has amazing photos.

 Kaye Thomas Manhattan Beach CA

 I am fortuante to be friends with many of these women and know others by their wonderful blogs.  All of us are actively working in some part of the real estate market. Most of us are actively engaged in sales while others are finding ways to make real estate more user friendly for both consumers and agents.  Blogging has allowed us to be more interactive  within  our communities and offer consumers a more intimate view of our local real estate markets.

 Happy Halloween... See you at the Pumpkin Race!                                      

Fall has proven to be  busier then usual for real estate sales in the Beach Cities.   Since October 1, 2009 there have been 142 homes and townhomes listed for sale,  130 homes and townhomes entered escrow and 96 have closed escrow.  Of the 96 closed escrows, 8 were in El Segundo, 25 in Manhattan Beach, 12 in Hermosa, 31 in North Redondo and 20 in South Redondo... and there is still another week left in the month.

On another note it seems that Hermosa Beach  was the only South Bay-Beach City to make the CNN list of USA towns where residents make over 6 figures.  Hermosa was listed with a median income of $137,941 and a median home price of $1,135,000.  Guess there won't be many more jokes about poor Hermosa!

South Bay-Beach Cities: Sold September 2009

South Bay-Beach Cities: Sold August 2009 

South Bay-Beach Cities: Sold July 2009

South Bay-Beach Cities: Sold May 2009    

South Bay-Beach Cities: Sold April 2009

South Bay-Beach Cities: Sold March 2009

South Bay-Beach Cities: Sold February 2009

South Bay-Beach Cities: Sold January 2009

South Bay-Beach cities: Sold December 2008

South Bay-Beach Cities: Sold November 2008

South Bay-Beach cities: Sold October 2008

South Bay-Beach Cities: Sold September 2008 

South Bay-Beach Cities: Sold August 2008  

South Bay-Beach Cities: Sold July 2008 

South Bay-Beach Cities: Sold June 2008 

South Bay-Beach Cities: Sold May 2008 

South Bay-Beach Cities: Sold April 2008 

South Bay-Beach Cities: SOLD March 2008  

South Bay-Beach Cities: Sold February 2008  

South Bay-Beach Cities: Sold January 2008  

South Bay-Beach Cities: Sold November 2007  

South Bay-Beach Cities: October SOLD 2007 

South Bay-Beach Cities: September SOLD 2007 

South Bay-Beach Cities: August SOLD 2007 

South Bay- Beach Cities: July Sold 2007 

South Bay-Beach Cities: Sold June 2007 

South Bay-Beach Cities: Sold May 2007 

South Bay-Beach Cities: Sold April 2007 

South Bay-Beach Cities: Sold March 2007 

South Bay-Beach Cities: Sold February 2007 

South Bay-Beach Cities: Sold January 2007 

 Redondo Beach Pier

  Click to take of tour of Redondo Beach  

If Manhattan Beach is the sharp Sophisticate  and Hermosa Beach is the Adorable younger sister then Redondo Beach is surely the Gorgeous older sister of the beach cities.   While the wind still blew over the empty dunes that would someday become Manhattan Beach and Hermosa Beach .. Redondo was the West Coast Resort town at he turn of the century.  People came from all over the country to the wonderful place that was Redondo Beach.  Most South Bay residents don't realize what a colorful history the City of Redondo has had over th e years.

Redondo Beach got its start because it has a deep seabed close to the shoreline.  In the late 1880's Los Angeles needed a port to handle shipping. Redondo Beach seemed an ideal spot.  By 1888 the city had  a  wharf and the Santa Fe was running a  line from downtown Los Angeles to Redondo numerous times a day.  By 1903 the city would boast 3 wharves and  was a major port...   although it would soon lose out to San Pedro.

In 1890 a grand resort  The Hotel Redondo had been built where Veterans Park now stands.  The hotel had 225 luxurious rooms with an 18 hole golf course, tennis courts and gorgeous landscaped grounds.  If you couldn't afford to stay in the hotel there was a Tent City nearby  where you could rent a tent with electric lights for $3.00 by the week or $10.00 by the month.  There was also the world's largest salt water plunge close to where the Seaside Lagoon is today. There was even a beach that was piled high with Moonstones between Diamond Street and Herondo in Hermosa.

Entrepreneur Henry Huntington  realized what an attraction Redondo was and established the Red Car Service that ran from downtown through Beverly Hills and along the coast through Manhattan and Hermosa to the boardwalk in Redondo.  Huntington decided that Redondo needed another draw and in 1907 or so he hired George Freeth. George was a tall good looking Hawaiian -Irish  kid who knew how to surf.  Huntington billed him as the "man who could walk on water" and soon thousands came to Redondo to see George hit the shoreline on his 8 foot redwood surfboard.  George quickly became not only the first surfer on the California coast  but the Father of California surfing.  

 In 1892 the residents  decided it was time to become a city and with a vote of 177-10 the deed was done. As the city continued to grow  the pier as a port  became less and less important.  By the late 1920's storms had destroyed two of the wharves and in 1926 Wharf #3 was demolished.. along with the grand Hotel Redondo.  The fabulous resort had been done in by the Volstead Act or prohibition as it was popularly know as by the local folk.

During the Depression years until 1940 Redondo was home to the Gambling Ships complete with bad guys, mob guys, alcohol and gorgeous gals.. This was the stuff of movies. With the advent of World War II the gamblers were gone and the city settled down.  The  Monstad Pier was enlarged and soon restaurants and shops were built over the water.  Although storms and fires have destroyed major portions of the pier over the years today it still remains a part of life in Redondo Beach.

In the late 1960's the City of Redondo made a tragic mistake and agreed to tear down the original downtown area and turn the area over to developers.  Fortunately Riviera Village is still a gem in South Redondo but losing an historic place like the original town was a terrible thing for the city to let happen.   Over the years the city has not evidenced a great deal of support for the history of Redondo and many of its buildings of historic value have been demolished.   The Redondo Beach Historical Society has a yearly tour of some of the homes that have survived.  There are not many left and this is a way to see some of the beautiful homes that are part of Redondo's heritage.

Redondo Beach is home to The Civic Light Opera of The South Bay.  The CLOSB has come a long way since it first began and has won a number of Ovation Awards for best show right under the nose of the Dorothy Chandler and Pantages theaters. The Ovation Awards are LA's version of the Tony's on Broadway.  Season tickets are reasonably priced and make a great gift.  The Lobster Festival in May is a must...there are pots  of lobster and corn for thousands.  The annual Super Bowl 10K on Super Bowl Sunday  brings out the best runners in town.  The Redondo Beach Pier is  a great place to visit.  There are fresh fish markets where you can take fish home or have it cooked to order.  There are  some wonderful restaurants you don't want to miss..  Old Tony's  has best view in town.   There is a new restaurant on the site of Tony's Fish market.. Maison Riz.  It is upscale and  features French/Japanese cuisine.   Kincaids is another upscale  restaurant on the north end of the pier.   In the middle is the El Torito Grill and an Irish Pub Kilkenny's.

Over the years a number of single family homes have been torn down and replaced by townhome style condos in both North and South Redondo.  There are only a few neighborhoods in the city that remain as strictly single family areas.  The TRW tract in North Redondo is one and  the upper avenues in South Redondo is the other. There are parts of the  streets east of PCH and south of Torrance Blvd that are also single family neighborhoods.  An interesting note is that the Lady Streets (Gertruda, Irena, Juanita, Lucia, Maria, Guadalupe, Francisca) were supposedly named after the daughters of the owner of Rancho Redondo.  I don't know if it's true ...but it should be as it makes a great story. 

Redondo is the largest of the Beach Cities and over the years has been divided between North Redondo and South Redondo with 190th street as the informal boundary.  The demographics  from the 2000 census  say the city is 6.3 square miles, with the population fairly evenly divided between renters and home owners.  I believe that number has changed in the last few years with a higher number of homeowners.  The median income was $69,173.  In 1900 the population was 885 in 2005 the population was estimated at 62,000 with slightly more males then females.  The city has definitely grown some over the years.  

 Search North Redondo Homes for sale.

Search North Redondo Townhomes/condos for sale

Search North Redondo Income Property for sale

Search South Redondo Homes for sale

Search South Redondo Townhomes/Condos  for sale (West of PCH)

Search  South Redondo Townhomes/Condos for sale (East of PCH)

Search South Redondo Income Property for sale

 
School District

There are 8 elementary schools... 5 in North Redondo and 3 in South Redondo.

There are 2 middle schools one in North Redondo and one in South Redondo.

The High School  is Redondo Union in South Redondo.

Library

 Redondo Beach has two libraries.. one in North Redondo ( under construction until June 2010) and the main library at the corner of PCH and Diamond.

City of Redondo Beach

MEETINGS:
City Council:First and third Tuesday at 6:30 PM
Planning Commission: Third Thursday at 7:00PM
Harbor Commission: Second Monday at 7:00 PM
Public Safety: third Monday at 7:00 PM
Library Commission: First Monday at 7:00 PM