April Real Estate Sales in the Beach Cities

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In spite of severely limited inventory, April’s closed sales in Manhattan Beach, Hermosa Beach and Redondo Beach were significantly higher than April, 2011.  This should come as no surprise to anyone who has been shopping for a home.  Buyers have been encountering frustrating multiple offers situations since February.  Now for the numbers: 46 homes sold in Manhattan Beach in April, 2012 compared to 36 April 2011.  Hermosa Beach saw 15 closed escrows compared to 9 last year, and Redondo Beach was nearly the same as last year with 63 home sales compared to 60 a year ago.  While Redondo Beach homes sold are nearly flat compared to the previous year, those 60 sales were eked out of inventories that ran in March and April at half what they had been a year ago.  Manhattan Beach inventories were also almost half the number of a year ago with April ending with 88 homes for sale compared to 164 April, 2011.

The prices have not changed significantly however.  Since the average price bounces around from month to month depending on the mix of sales, it is difficult to spot a trend in the numbers yet, but anecdotally we know that there have been a large number of homes sold with multiple offers, and those situations are similar to auctions that bid up the price.  In Redondo Beach and elsewhere, the appraisals have not increased in many cases to reflect the value of the homes in the present market.  Buyers and sellers have had to renegotiate some of the contracts down to get the needed financing.  And the negotiations have not been all one way with buyers coming up with extra cash in some cases to keep from losing the home they want to buy.  Another trend we have been seeing is that  developers are re-entering the market creating more competition for the lower priced homes in Manhattan Beach.  There have also been more off-market or “quiet sales” which has restricted the number listed on the multiple listing service and widely marketed.  The interest rates have remained amazingly low through-out this period.

If you would like a more detailed break down of sales in your specific neighborhood, please give me a call at 310-995-1597 or email me at Mickey@Come2theBeach.com.  Whether your are planning on purchasing or selling, you need to know the latest numbers by property type and price range to make smart decistions in this rapidly changing market.