Market Conditions in 90278>Question Details

Curtis Ander…, Home Owner in 90278

How is the housing market in the South Bay of Los Angeles/Redondo Beach?

Asked by Curtis Anderson, 90278 Thu Jan 24, 2013

Are you seeing the value of your home go up, down, or leveling off?

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BEST ANSWER
The good news: we're out of the bottom.

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%.
1 vote Thank Flag Link Thu Jan 24, 2013
Readers,

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."

Works cited:

Sichelman, Lew. "Foreign Buyers Are Snapping up U.S. Homes." Los Angeles Times. Los Angeles Times, 11 Mar. 2012. Web. 13 Feb. 2013.
1 vote Thank Flag Link Wed Feb 13, 2013
In a word.....crazy. We're certainly seeing values rise as inventory continues to fall, distressed sales become less of a driving factor, and demand remains steady. The real difference is that the current market is showing signs of the frenzy of just a few years ago with not only multiple offers often over list price, but often all cash offers way over asking with no appraisal contingencies. How can a regular buyer compete.....they can't until inventory picks up and we shift back to a balanced market.
1 vote Thank Flag Link Thu Jan 24, 2013
Home values have consistently going up and as the rest of the Los Angeles county the year over year median home price has gone up more than 20%. The median home sales price for the entire city for the month of April was $756,283 as reported by the South Bay Association of Realtors. It is great to move up or down for people with positive equity and someone who was underwater could think about selling without having to short sale.
The market is great for first time home buyers due to the low interest rates.
0 votes Thank Flag Link Thu May 23, 2013
It's a sellers market right now, inventory is tight and prices are rising. interest rates still hovering around the 3.5 range.
0 votes Thank Flag Link Sat Apr 13, 2013
The market is strong for sellers, difficult for buyers. Low inventory and prices are rising.

http://manhattanbeachre.com/
0 votes Thank Flag Link Mon Feb 25, 2013
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