New Construction Redondo Beach: May 2011

The good news is that closed sales in March were a major improvement over those in January and February in all the South Bay-Beach Cities. The bad news is that closed sales in April are not looking as good as those in March. However pending sale numbers are holding fairly steady with not too many surprises. Inventory is creeping up a bit but not overly so for the time of year.

All in all what we are seeing is a lackluster but fairly steady market. Buyers want homes that are priced to sell, in good condition and in a good location... and they tend to sell very quickly. Marginal properties command significantly lower prices and seem to stay market for long periods of time unless they see major price reductions. Buyers are picky and willing to spend a long time looking for the right house. There is no sense of urgency in this market... yet.

The big surprise for many is that new construction is beginning to hit the market. Redondo has 13 properties on the market listed as new construction. Builders in Manhattan Beach are again picking up properties to tear down and build spec homes. While there are not many of these projects yet... the fact that builders are returning to the market indicates that our local Beach Cities real estate market may be starting to see some stability.

That said... short sales and foreclosures will keep the market in check for a little longer. Rising interest rates may be an additional factor to consider, although the last time rates soared in the late 70's and early 80's prices remained flat rather then declining by a huge percentage. As always the only constant in this market is change...

South Bay-Beach Cities: Sold March 2011