The housing prices in the South Bay of Los Angeles are up on average %15 for 2012 vs. 2011. As stated in the Daily Breeze article on January 15, the whole Southern California median price from Dec. 2011 to Dec. 2012 has increased 20%.
In the South Bay, with active residential properties listed for sale at 70% less than normal, the market is absolutely a seller's market. Each property that comes up for sale - that's priced properly - is receiving multiple offers and goes into escrow within a few days. The article also points out that 34% of all sales are all cash purchases. This is indicative of a SELLER'S market. Pent up demand, low interest rates and good affordability has activated many consumers into the "buying mode". If you' need to sell, the low inventory of homes is driving up prices. And that's a great thing to take advantage of a hot, hot seller's market.
If you're a buyer, you've got to get all your ducks in a row to make a purchase. You've got to be pre-approved, have a strong downpayment and work with an agent who works aggressively to show you find you properties even before they come onto the market. This helps the buyer have the edge to see properties and make offers before the competition with the other buyers.
I am an agent who participates in several networking groups - my RE/MAX alone has 13 offices and we share properties before they go onto the market. My other networking groups are with agent from other Brokerages. I am turning over every stone for my buyers, sniffing out properties before they go on the MLS.
Specifically, North Redondo prices are up 15% and South Redondo is up nearly 12%.
Brush up on your inter-cultural communication skills! There are more foreigners buying a record number of homes in the South Bay area of Los Angeles. Recently, most of my clients come from Canada, China or Japan. According to Lew Sichelman, a housing market reporter from LA Times, "Foreign clients bought $41 billion worth of stateside houses and apartments during the 12-month period that ended in March 2011, according to the latest tally by the National Assn. of Realtors. That's roughly the same as the previous year." However, according to immigration inflation and the world economy health, " But add in the $41 billion spent by immigrants who moved here within the last two years and individuals with visas of more than six months, and the total is $82 billion worth of U.S. residential real estate taken off the market by international buyers, up from $66 billion the year before."
Also, the housing market in Los Angeles will always be great even in down times. Why? The climate!As illustrated, " According to an analysis of Internet searches of U.S. real estate by foreigners in last year's fourth quarter by Point2, a real estate technology company, Florida holds the most interest, followed by Arizona, Nevada and California. None of this is terribly surprising. Not only are housing prices languishing in these spots, but most people prefer warmer climates. What may be surprising, though, is that many foreign buyers are not coming to the U.S. from that far away."
To summarize, with the "checks & balances" of a buyers and sellers market, the same amount of cash flow will translate. To answer your question, the housing market is amazing because of the amount of foreign investment. Portrayed in LA Times, "Rather, it's foreign buyers' desire to protect their money from the ravages of their own economies."
Sichelman, Lew. "Foreign Buyers Are Snapping up U.S. Homes." Los Angeles Times. Los Angeles Times, 11 Mar. 2012. Web. 13 Feb. 2013.
The market is great for first time home buyers due to the low interest rates.