Tiffany Wilson, Specializing in First Time Home Buyers & Investors

I remember the first time I bought a home. I wouldn't necessarily say that it was stressful, but I must admit that I knew NOTHING about buying a home. Well, let me clarify: it was easy to find a home, but every step after that was unfamiliar. I look back now and am SO thankful that I had an excellent Realtor to guide me and keep me safe.

That first purchase though sparked a fire in me - I became addicted to real estate. After that, I learned a lot more about the process of buying a home - shopping for loans, researching the market, what the heck is escrow anyhow, etc... I have come a long way, but it took a long time. I still remember what it was like, and so I understand what my first time homebuyer clients feel like right now.

In fact, I have ended up specializing in working with first time homebuyers. I really enjoy taking the time to explain the purchase agreement that they are signing, as well as the other agreements. I enjoy fielding their calls and emails regarding market values in particular areas. I have also teamed up with a lender who also specializes in working with first time home buyers, and he is GOOD. I always feel confident that then I send my first time homebuyers his way, that he will answer their questions and provide them with the information that they need to feel safe and comfortable with their decisions.

Now I am proud to announce that in an effort to further serve first time home buyers, I will be co-hosting a First Time Home Buyer seminar on January 21, 2009 in Manhattan Beach, California. Here are the details:

When: Wednesday, January 21, 2009 from 7-9 pm

Where: Manhattan Beach, CA (address to be provided with RSVP)

Who: Folks who have not owned a home in the last 3 years

RSVP: Conact Tiffany Wilson at 310-503-0557 or tiffany.wilson@shorewood.com

Notes: Snacks and beverages will be served. This event is FREE!

RSVP today to ensure your spot!

For Sale Vs. Sold

Compared with North Redondo Beach, South Redondo Beach sales have paled in comparison. However, October saw some relief, tying with April and June this year for the highest number of sales - typically unheard of in the fall months. But with only 3 pending sales, expectations are low for November sales.

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

In last month's report, I mentioned that I felt that South Redondo Beach sellers were asking too much for their homes. The graph above demonstrates the accuracy of that statement, as most homes in October that sold, did so at around 8% below the listing price! In most other areas, we see sale prices around 3-4% below the listing price.

Average Price - Sale Vs. Sold

I don't even know where to begin with this data. I don't believe that the red line - Average Sold Prices - indicates any upward trend with the sudden spike up in October. Mainly, because this information coupled with previous graphs still indicates that demand for South Redondo Beach homes at their current prices is low. But the Average List Prices indicating a somewhat flat trend since February 2008, may indicate that most South Redondo Beach Sellers just don't need to sell for anything other than the price that they want.

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.

The sudden dip in Months of Inventory for October is primarily due to the higher than normal sales for that month. Seeing as the number of Pending Sales are low, we can anticipate that the Months of Inventory will increase next month.

Summary

Last month, I tried to explain that buyers should not be discouraged by the high asking prices in South Redondo Beach, reminding them that making below-asking-price offers on homes that may be fairly or over-priced can be as effective as making offers on below-market price homes. This month, we see a prime example that this is in fact possible with average sale prices significantly below the asking price. I think it is safe to say that we can expect this to hold true for several more months.

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 beach communities of the 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, 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.

For Sale Vs. Sold

You know all the media focus on how badly the real estate market is doing? Well the graph above is a reason why you have to take everything that they say with a grain of salt. North Redondo - and other South Bay areas - have been faring not too badly, when it comes to several key measures.

A steady continuation of the inventory reduction is occurring, along with a continuation of swift sales into the fall. Typically, we see a seasonal reduction in the number of sales starting around September. But that has not been the case. Even more promising is that the number of pending sales in October is still rather high, at 13. That means that we can logically anticipate that November will have at least 13 sales.

A personal observation is that Redondo Beach seems to be a favorite for first time homebuyers. Many first time homebuyers are looking to make Redondo Beach the location of their first home. As can be expected, it is due to the proximity to the beach, jobs, an excellent school district, the low crime rate, and of course, the reasonable home prices.

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

The average days on market indicates how long listings are remaining on the market before they are sold. One important point to note is that these numbers do not take into account those listings that do not end up selling, and instead indicate how long fairly priced homes will take to sell.

This is a perfect example as to why it is so important to price a home well when listing it on the market. Pricing a home too high can result in it sitting on the market for far longer than it should, costing the seller time and money.

The trend of Selling Price versus Listing Price in North Redondo Beach is following suit with what we are seeing in the Greater South Bay - selling prices below the listing price. Well into the fall, it looks like sellers are willing to accept larger discounts off of their asking price, probably because they realize that it will be more difficult to sell their home during the holidays.

Average Price - Sale Vs. Sold

In October, we see a jump from September in the Average Sold Price. However, October's Average Sold Price is still less than August's, demonstrating the continuation of the downward trend.

October's Average Listing Price is also on a downward trend, consistent with the expectations for the season. I think it is fair to say that we will continue to observe this trend, at least for the rest of the year.

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.

Even though the majority of the past 14 months have not technically been in a buyer's market in Redondo Beach, the state of the finance crisis weighs in on the situation when buyers and sellers come to the table. That is especially true for the fall and winter months, when there are fewer sales.

Summary

Last month, in my summary I stated that the North Redondo Beach market is showing indications of recovery. I still believe that, but let me clarify that statement: I believe we are seeing very preliminary signs of recovery. The inventory is steadily reducing through swift sales and a reduction in the number of homes hitting the market. Of course, the entire real estate market is affected by the financial crisis, which has looked more dire this past month.

But the reduction of inventory in the North Redondo market is significant. I believe that in 2009, this will help home values in the North Redondo Beach area to stabilize. It's simple supply and demand. Of course, before this can happen, consumer confidence needs to be bolstered.

Let me remind you that if you are currently able ready and able to buy a home, there is no need to wait for home values to drop further. Statistically speaking, if you plan on living in a home for more than 3 years, the value of your home should not decrease, and should in fact increase. Interest rates are very low right now, but you don't know where they will be in a few months. A 0.5% change in interest rate can equate to a 5% change in buying power. That is like money in your pocket!

If you are even considering a home purchase or sale, I would love to earn your business. My team and I have the knowledge and expertise needed to help you make an educated and comfortable real estate decision. We would be happy to arrange a no-obligation consultation with you.

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 beach communities of the 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, 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.

For Sale Vs. Sold

We are observing a definite, consistent turnaround. Inventory has been on a steady decrease, and it looks promising that this trend will continue. Sales are high, also with the expectation that this trend will continue, though very likely at a slightly lower level.

In October, we see inventory that has only 9 more units than last year in December. With a high number of pending sales in October, I can safely say that inventory in December of this year will be lower than the same month last year. This is promising news for sellers, and could be a very early indication that the bottom is near.

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

The average days on market indicates how long listings are remaining on the market before they are sold. One important point to note is that these numbers do not take into account those listings that do not end up selling, and instead indicate how long fairly priced homes will take to sell.

You will also see on this graph how much a home sold for, versus its list price. An obvious trend indicates that homes are now selling for less than their list price, which is a different story than what we saw a few years ago.

Homes are also remaining on the market longer than they were a year ago. This chart here demonstrates exactly why it is so important for sellers to price their home fairly. Any homes that are overpriced will not get any attention, and will cost the seller precious time in a rapidly changing market.

Average Price - Sale Vs. Sold

We find some important information on this graph about list prices and sales prices.

The green line shows the direction that listing prices have been headed. It is interesting to note that listing prices have been on an upward trend since January of this year.

Inversely, the red line shows that sales prices began a sharp decline in June of this year.

It is interesting to see two very opposite trends for 2 statistics that most people would normally expect to follow the same direction. But this is a prime example of what is going on in the market. Coupled with the first graph which shows high sales, we can extrapolate that it is the lower priced homes that are selling swiftly. So for all you sellers, be careful how you price your home if you need it to sell fast. Buyers are out there waiting to pay a fair price, and they know that they are the drivers.

One side note to these observations: Buyers should not get the idea that they can get discounts of 20%, 30%, or more on the purchase of a home. The only homes that are being sold at a discount are bank owned homes, short sales, or homes that are in significant disrepair. However, you do still have negotiating leverage, and offers below the asking price are the norm these days.

Months of Inventory

Anytime inventory is more than 6 months, it is considered to be a buyer's market. Though sales have been swift and inventory has dropped, we still have a steady flow of inventory coming on the market that are bank owned or short sales. Once this flow lessens, we will begin to see a further steady drop in the months of inventory.

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 beach communities of the 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, 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.

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.