South Redondo Beach Market Report - September 2008

For Sale Vs. Sold

South Redondo's low level of sales continued into September. There was a small reprieve in the number of homes on the market, though that can be attributed to the 3 sales from the previous month, with the remaining 2 fewer homes most likely being removed from the market.

South Redondo Beach is an amazing place where many people would choose to live. However, we have seen such lackluster sales in the past year. My theory is that the homes in South Redondo Beach are just priced too high for the current buying population. The next graph may support this theory.

Days on Market - Sold Vs List Price (as a Percentage)

In today's market it is not uncommon for homes to sell below the asking price. On average, I am seeing most areas sell around 3% below the asking price. On this graph, we are seeing that the average sale price below the asking price is 4%. That tells me that sellers in South Redondo Beach are asking for too high a price on their homes. Add to that the higher Days On Market levels, and that may support this theory.

Suggestion to sellers in South Redondo Beach: lower your asking price, or be ready to take an offer that is 3-5% below your asking price.

Average Price - Sale Vs. Sold

Typically when there are small sample sets, it can be difficult to identify trends or other telling information that larger sample sets can demonstrate. However, this does not appear to be the case here. There is a very obvious downward trend in the selling price - the red line. However, we can also see that except for the dip in asking price - the green line - at the end of 2007, asking prices have remained pretty steady. September shows a big dip in asking price, but it is too early to say whether this is an anomaly, or the beginning of a trend.

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.

This is just another way of depicting the lackluster sales in South Redondo Beach. What these numbers show is how quickly the entire inventory can be depleted at each month's sales rate.

Are you a buyer or seller in today's market? Call or email me today to find out how I use this information to help you be successful in this rapidly changing market.

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 communities of the Greater 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 and out-of-state investment purchases, 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.