Sunday, June 27, 2010

Information on properties that sold in May 2010 in the Beach cities of Manhattan Beach, Hermosa beach, Redondo Beach and El Segundo....

Hermosa Beach walk street

As the Spring home buying rush moves into summer,  the market seems to be settling down a bit from the frenzy earlier in the year.  Inventory is up slightly but still at  lower levels than last year at this time.  Interest rates are at an all time low with conforming loans ( $729,750-) under 5%  for  a 30 year fixed rate loan. .. doesn't get better then that!   Appraisals are coming in a market more often then  they did last year as everyone adjusts to new laws  and requirements.  Prices seem to be on the flat side although slightly higher then last year for entry level properties in all the South Bay-Beach Cities.

The big question is will the market continue to be rather stable in the South Bay-Beach Cities  or will outside market forces once again force changes in our local market.  Lou Barnes seems to think we need to see some major adjustments in the thinking of the boys in DC... and I agree.  Economic conditions are  far more dicey then we think.  If the South Bay can continue to avoid major unemployment as an issue we may  continue to see a fairly stable market with prices bouncing up and down in a relatively normal market pattern. 

South Bay-Beach Cities: Sold May 2010

 

A look at April 2010 home sales in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo...

Manhattan Beach Strand

Seems as if Spring has definitely sprung for the South Bay-Beach Cities real estate market.   Inventory is increasing  slightly from the first quarter as more sellers are testing the market.  While inventory is still well below that of last year at this time, there are definitely more choices then buyers saw a few months ago.   Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo are all  experiencing  a rise in home sales after some very  lean years. 

Prices at the entry levels are holding steady and even showing slight increases from last year in all the Beach Cities.  That part of the market has been very steady now for about a year.  The middle  of the market is also  showing  signs of stabilizing while the upper levels are anyone's guess.   There are sales in the $3.5+ range but most of them  found buyers after some big price reductions. 

On the other hand, Strand properties in Manhattan and Hermosa are posting prices that are well above those found at the height of the market.   These properties are the epitome of the old adage location, location, location.    The South end of  the Manhattan Strand and the North end of the Hermosa Strand seem to be the place for  upper end properties.  It will say a lot about the draw of our local real estate market if these homes find buyers near the asking prices.

Manhattan Beach:  Days on Market April 2010








 There have been definite changes in the Manhattan Beach  real estate market  from April 2009- April 2010.  Inventory has gone down,  sales have gone up and interest rates  remain lower then many anticipated.   Last year  there were 178 homes and 45 townhomes for sale in Manhattan Beach in April 2009.  This year there are 108 homes and 40 townhomes for sale.  Last year by mid April 7 homes and 4 townhomes had closed escrow.  This year 23 homes and 3 townhomes have closed escrow so far this month.  Last year there were 39 homes and 11 townhomes in escrow... this year there are 53 homes and 14 townhomes in escrow.

While the numbers don't come near the figures for the boom years prior to 2007, the steady trend of the last 3 quarters shows that the market may be beginning to stabilize.    The upward push seems to be coming from the lower end as the entry level is showing  stable to slightly higher prices then last year at the same time.   The mid range of the market continues to bounce a bit but in general is finding a more solid course.  The  upper end the market is still looking for stability.  Most of the high end  homes that are selling are  those that have lowered their prices from last year.   There are a few exceptions of course,  but in general  prices on higher end homes have more room before reaching  bottom. 

The days on market continue to show that  the overall market still has some wiggle room before reaching the bottom.  Homes that are priced right are selling fairly quickly but  generally inventory is seeing average market times of 90+  days.   Price, location  and condition are still the keys to a quick sale.    If you have to sell fast you need to price it right and make it sparkle.



Manhattan Beach: Market Snapshot April 26, 2010

















Manhattan Beach: Price Ranges April 26, 2010

 

The Hermosa Strand

Hermosa Beach has come a long way from the days when most of the City Council members were renters and Bikers ruled.  The local elementary schools are some of the best in the state and parents have a choice between Mira Costa and Redondo Union for  High School.  

Strand homes  in Hermosa are priced very competitively with  those in Manhattan Beach.   Charming Walk street homes  lure buyers looking for that  small town beach cottage  feeling rather then the more sophiscated homes found in Manhattan Beach.   Hermosa has grown up and  well qualified  buyers with cash are  taking the place of  renters as old rental units are torn down and replaced with owner occupied homes.

There were 49 homes sold during the period from October 1-March 9, 2010.  During that time frame  7  sales were all cash, 22 buyers put down 25% or less down and 20 buyers put down 30% or more.


Hermosa Beach: Down payment % for single family homes:

 

                                                                                 The Redondo Beach Pier



After I posted about  down payments on  home sales in Manhattan Beach,   a reader asked if I would do a similar post on Redondo Beach home sales. I apologize for taking so long but I've been out of town packing up my Mom's home so she can move back to the mainland... but that's another story.

Reviewing the  percentage of cash used for down payments on recent home sales has pointed out the difference in Manhattan Beach home buyers and Redondo Beach home buyers.  I was so intrigued that I'm going to post for Hermosa Beach  and El Segundo in a few days to complete the comparison for all the Beach Cities. 

North Redondo and Manhattan Beach are opposites in the Beach Cities real estate markets.   Manhattan Beach is of course the high end with North Redondo being the entry level.  In Manhattan Beach all cash sales made up over 20% of the market.  In North Redondo they were less then 10% and in South Redondo they were  slightly above 10% of closed sales.

 In North Redondo 80 single family homes closed escrow from October 1, 2009-March 7, 2010.  Of those 80 homes 6 were cash sales,  50 buyers put 20%  or more down while 18 buyers used either  VA or FHA funding less then 10% down.  In South Redondo 37 homes closed escrow during the same period.  4 were cash sales, 21 were purchased with 20% or more down and 10 were purchased using FHA loans.  In Manhattan Beach, of the 119 homes sold,  only one property sold using FHA financing, and 115 sold with more then 20% down.   




North Redondo:  Down payment %  for single family homes
















South Redondo: Down payment  % for single family homes


















**As with Manhattan Beach the figures are based on  single family homes...