It is hard to fathom how in demand affordable homes are in the South Bay. Currently, if there is a home listing for sale on the lower end of the price spectrum for the area, there is massive demand.
Redondo Beach
There has been a frenzy of activity in North Redondo for anything under $1 million. It seems almost everything is receiving multiple offers. Buyers are competing with double digit offers and homes are selling for five to ten percent higher than list price.
Take for instance our agent Frank Sabatasso’s very nice listing on 2106 Rockefeller #E. He received double-digit offers and was off the market in a flash. During the same week, the completely updated home at 2212 Carnegie Lane #3 (right down the street) received close to twenty offers!
Even this South Redondo home asking $899,999 at 1400 Diamond Street (directly on busy Prospect) received multiple offers and is going higher. One of our clients’ offered over asking and all cash…and the seller wanted more!
Palos Verdes
Redondo Beach is not the only example of crazy high demand for entry level homes. Lunada Bay had a fabulous 4-bedroom entry level home with tons of potential at $1,475,000 on Via Carillo. It received multiple offers and went to escrow quickly. Same for two Valmonte homes across the street from one another at 4028 Via Pima and 4041 Via Pima. Both went to contract in only a few days and will go way over asking.
Hermosa and Manhattan Beach
My Hermosa Beach condo listing at 447 Herondo Street #206 received multiple offers and will break the building record previously set in 2006. And let’s not forget Manhattan Beach entry level homes east of Sepulveda in areas like Liberty Village where multiple offers seem to be a fact of life. It is truly a huge challenge being a buyer these days.
Conclusion
This trend was to be expected per my Fearless Predictions blog from January. It is fueled even more so by the fact that interest rates have not risen, but are at their lowest point since the election per CNBC’s clip here. This is driving down mortgage costs and allowing buyers to afford homes they originally could not. The real phenomenon here is supply and demand. Buyers are finally off the fence!
This is not just a happening in the South Bay, but throughout California. One 25-year veteran agent in Burbank went so far to say, “…this is the strongest seller’s market I have seen in my entire real estate career.” See more on the general market here.
For now, affordable entry level homes are en vogue and the trend does not look to be stopping anytime soon!
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]