The Beach Cities (Manhattan Beach, Hermosa Beach, and Redondo Beach) housing market began to stabilize towards the end of 2011 and this year has started with a bang. Pended sales increased 40.5% from January to February this year, which is a strong indication that the Beach Cities market is heating up. With historic low interest rates still available it is a great time for home buyers to enter the market.
The average sale price in February was $915,000, which was 94% of the list price. This disconnect between what home owners think their house is worth vs. the actual market price mimics what is seen nationwide. However the gap between listing price and sale price is actually narrowing. With less inventory coming to market, we expect the difference between list and sale price to narrow even more until more over the next few months. February saw only 303 homes listed for sale compared to 470 six months ago and 500 beach cities homes for sale in 2011. If you’re looking to take advantage of the historic low interest rates now is the time to buy before prices start to rise due to the difference in demand and number of homes for sale.