Redondo Beach Real Estate Market Update
Redondo Beach Single Family Real Estate Market
First, we are going to talk about the Redondo Beach single family market and then go onto review the condo and townhouse market.
For the second week of February, the median list price is $1,597,500, which is about the same that it was the end of October when it was $1.6M.
However, the price per square foot has increased quite a bit since October going from $869 to $940/SF.
The median days on market is 0 this week, which has been steadily decreasing again because of the inventory shortage. Pretty much as soon as a home gets listed you have a couple of days at most to get your offer in and with so few listings that’s why the number is so low.
Inventory is insanely low with only 14 single family homes on the market hence the reason why everything is selling so quickly because there’s 14 homes and hundreds of buyers competing for these 14 homes. The 90-day inventory average is 7, which is insanely low!
Now let’s look at the price per square foot progression. Right now we are at $941/SF So what that means is if you are purchasing a 1000 SF home then at the median price you will pay $941K. Just from October the prices are up about 8.5% from $869. From February 2021 to now, the price per square foot jumped from $798 so that’s a 16% increase in just a year. The reason we are seeing these big increases is low inventory coupled with high buyer demand especially with interest rates climbing because buyers want to lock in a low rate. Interest rates have seen a big jump in the last month and as of February 17th , the average 30-year fixed conventional and jumbo rate was 4.25% up from 4% a week ago and 3.25% in January.
One thing I wanted to highlight was the inventory. You can see from this graph that we are way down on inventory at just 14 homes for sale- the lowest we’ve seen in the last 3 years. This time last year, inventory was still really tight, but there were 24 homes for sale. That’s down from February 2020 where we had 34 homes for sale and February 2019 we had 37 homes for sale. So if you have been thinking about selling now is the time because you have zero competition!
Redondo Beach Condo/Townhouse Real Estate Market
Now let’s take a look at the condo and townhouse market. The median list price is $1.098M, which is down from October when it was $1.325M, but I think a big factor for that is because inventory is so low and there’s not much to compare because if you look at the price per square foot, we are up to $689 from $655 in October with some peaks and valleys in that time frame.
Median days on market we are at 0, which has been decreasing as the inventory decreases. Inventory of townhomes and condos is at 17 down from 43 in October.
If we take a look at price/square foot, we see a pretty steady increase and slight dip middle of 2021. In October, we were trading at $636/SF and now we are up to $689/SF. That’s an 8% increase in just 3 months. Three years ago we were trading at $565/SF.
When we look at inventory, we are way down at 17 homes for sale from 37 one year ago, 35 in February 2020 and 70 in February 2019. Again, that’s why are are seeing so much competition.
United States Home Sales
The National Association of Realtors reported that existing-home sales totaled 6.21 million in 2021, which is up 8.3%from the number of homes sold in 2020. That represented the most homes sold in a year since 2006. The median price of a home ended the year 15.8% higher than at the end of 2020 and December marked a record 118-straight months of year-over-year increases in the median price paid for a home in the United States. Inventory levels also hit a record low. Inventory levels ended 2021 with 14.2% fewer homes for sale than the number of homes for sale at the end of 2020. There was just a 1.8 month supply of homes for sale on December 31, 2021, an all-time low.