For Sale Vs. Sold
Compared with North Redondo Beach, South Redondo Beach sales have paled in comparison. However, October saw some relief, tying with April and June this year for the highest number of sales - typically unheard of in the fall months. But with only 3 pending sales, expectations are low for November sales.
Days on Market - Sold Vs List Price (as a Percentage)
In last month's report, I mentioned that I felt that South Redondo Beach sellers were asking too much for their homes. The graph above demonstrates the accuracy of that statement, as most homes in October that sold, did so at around 8% below the listing price! In most other areas, we see sale prices around 3-4% below the listing price.
Average Price - Sale Vs. Sold
I don't even know where to begin with this data. I don't believe that the red line - Average Sold Prices - indicates any upward trend with the sudden spike up in October. Mainly, because this information coupled with previous graphs still indicates that demand for South Redondo Beach homes at their current prices is low. But the Average List Prices indicating a somewhat flat trend since February 2008, may indicate that most South Redondo Beach Sellers just don't need to sell for anything other than the price that they want.
Months of Inventory
Anytime inventory is more than 6 months, it is considered to be a buyer's market. 3-6 months, a neutral market. Below 3 months, a seller's market.
The sudden dip in Months of Inventory for October is primarily due to the higher than normal sales for that month. Seeing as the number of Pending Sales are low, we can anticipate that the Months of Inventory will increase next month.
Summary
Last month, I tried to explain that buyers should not be discouraged by the high asking prices in South Redondo Beach, reminding them that making below-asking-price offers on homes that may be fairly or over-priced can be as effective as making offers on below-market price homes. This month, we see a prime example that this is in fact possible with average sale prices significantly below the asking price. I think it is safe to say that we can expect this to hold true for several more months.
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
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