June Sales Figures Show the Best Spring Market Since 2007

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Beach Cities Sales Increase In Spite of Low Inventories

The first six months of the year are the busiest in the real estate market.  This spring was no exception with a 10.8% increase in the number of transactions in Manhattan Beach,  a 36% increase in Hermosa Beach, and a 21% increase in Redondo Beach.  Average sales prices also increased from $1,743,688 to $1,754,955 in Manhattan Beach, and from $1,322,166 to $1,399,142 in Hermosa Beach.  The largest of the three cities, Redondo Beach still saw declining prices as the average sales price for the first six months declined from $660,740 to $623,528 in spite of multiple offers on many transactions.  The truly remarkable thing about the increases in the number of homes sold is that this has happened in spite of record low inventories.  June ended with just 2 months worth of unsold homes in Manhattan Beach, 3.3 months in Hermosa Beach, and 1.8 months in Redondo Beach!

Low inventory levels may affect the market going forward.  July and August are typically not big sales months at the beach, but wih the pent-up demand we have felt this year they should be better than the same period of the last four years, if there is new inventory.  Sellers are naturally reluctant to list their homes for sale if it means locking in a loss of equity, especially if they purchased at the peak of the prices.

This data is from the reported sales on the multiple listing service, and does not include sales private sales.  If you are planning to purchase or sell, contact me for a report on sales in your neighborhood which may vary from the city-wide figures.  Your strategy depends on your knowlege of the activity in your immediate neighborhood.