Los Angeles Real Estate Blog

The North Redondo Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

During the Spring season, North Redondo home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 166 homes for sale in North Redondo and 20 sold. Translation, under current market conditions, in any given month, you have about a 1 in 8 chance of selling your home.

In other words, when pricing your home, the practice of adding a "Pad" or "Cushion" to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today's market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What's Happening:
On April 1, 2008, there were 166 active listings for sale in the North Redondo Market (Area 151-154): 71 Houses; 84 Townhouses; and 11 Condominiums.

In the past year, there were 411 homes sold in North Redondo (between 4.01.07 and 3.31.08): 165 Houses; 237 Townhouses; and 9 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.5 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 160 days, Townhouses will be on the market an average of 128 days, and Condominiums should be on the market an average of 440 days.

Market Recap for the Month of March 2008
When one compares the March results with the yearly result, we find that there is an approximately 8.3 month inventory of homes for sale in North Redondo.

Broken down by specific property type, we find that there is a 7.8 month inventory of Houses, a 7.6 month inventory of Townhouses, and a 0 month inventory of Condominiums on the market in North Redondo. (Based on current absorption rates).

How should a Seller approach the market? The key in today's market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the North Redondo and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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North Redondo Home Sales by the Numbers
20 sold in March 2008
75 sold in March 2007

166 Current Active Listings
71 Houses
84 Townhouses
11 Condos

20 Sold in March 2008
9 Houses
11 Townhouses
0 Condos

12 Expired in March 2008
7 Houses
5 Townhouses
0 Condos

42 Contingent & Pending in March 2008
18 Houses
22 Townhouses
2 Condos

75 Sold in March 2007
28 Houses
47 Townhouses
0 Condos

49 Sold in March 2006
20 Houses
28 Townhouses
1 Condos

60 Sold in March 2005
13 Houses
45 Townhouses
2 Condos

47 Sold in March 2004
21 Houses
25 Townhouses
1 Condos

56 Sold in March 2003
17 Houses
36 Townhouses
3 Condos

67 Sold in March 2002
27 Houses
38 Townhouses
2 Condo

67 Sold in March 2001
27 Houses
38 Townhouses
2 Condos

63 Sold in March 2000
24 Houses
38 Townhouses
1 Condo

8 Expired in March 2007
2 Houses
6 Townhouses
0 Condos

6 Expired in March 2006
2 Houses
4 Townhouses
0 Condos

4 Expired in March 2005
3 Houses
1 Townhouses
0 Condos

3 Expired in March 2004
2 Houses
1 Townhouses
0 Condos

4 Expired in March 2003
3 Houses
1 Townhouses
0 Condos

4 Expired in March 2002
3 Houses
0 Townhouses
1 Condos

5 Expired in March 2001
1 Houses
3 Townhouses
1 Condos

11 Expired in March 2000
6 Houses
5 Townhouses
0 Condos

To search for bank owned properties on the market go to http://www.LAHomeSearch.com

To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, santa Monica, and Malibu go to http://www.LAHomeSearch.com

For Los Angeles Real Estate go to http://www.LAHomeSearch.com

To search for "For Sale By Owner" properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com

Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com

About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com