Home sales in Redondo Beach reach seven year high

by shundley on December 1, 2014

Six-month market reports show housing industry in Redondo Beach and nationally may have entered recovery stage.

 By Michelle Mears-Gerst

Contract activity in the first half of the year for selling and buying homes is at its highest level since late 2006 according to the National Association of Realtors.

“We have definitely seen a shift in the past six months in home sales,” said Sam Xavier from the Real Estate office of Xavier and Xavier in Redondo Beach.

Xavier said the price point for entry level in his market rose from $620,000 to just over $700,000.

PPG Redondo JulyThe Pending Home Sales Index showed in May a record number of homes nationwide placed under contract to be sold.  Economists speculate some of the activity may be the result of homeowners watching the mortgage rates rise. Sellers want to get take advantage of the equity in their home and buyers do not want to miss the affordability of low interest rates.

The demand from both sellers and buyers acting in speculation has helped push the market to record levels.

“People can speculate all they want but we are not looking at another 2005 to 2006 surge in home prices,” said Xavier.

According to Redondo Beach’s July market report, the average single family home sold was $1,349,500 and the average listing price was $1,317,182.89.

PPG Redondo July 2013

Nationwide market reports also showed the first half of 2013 favored sellers who in many communities received full price offers or offers above the asking price.

Xavier who specializes in real estate in the Redondo Beach community says he expects home sales over the one million dollar mark to begin to level off and remain flat but for homes prices to rise slightly at lower price points.

“If you are looking to sell, sell,” said Xavier who recommends against trying to time the market.

Interest rates have been steadily creeping up and sellers risk prospects losing their buying power. According to Bankrate.com interest rates on a 30-year fixed mortgage rose from 3.99 percent at the beginning of June to 4.40 percent ending the first week of July.

Lawrence Yun, a chief economist at the National Association of Realtors reports the national median price for a home sale is expected to rise more than 10 percent in the second half of 2013. This would be the largest increase since 2005 when the market jumped 12.4 percent.

The lack of inventory in home sales is contributing to the higher steady home listings. In Redondo Beach, the housing inventory is less than two month.  A balanced market has at least a 5.5 months’ worth of inventory.

Xavier said pocket listings in Redondo Beach are growing. “We have a list of qualified buyers who are watching the market in our community and have their eye on certain school districts, avenues, style of home etc.”

Xavier said homeowners who are the fence to sell should contact his team to discuss options.

redondo home

RIS Media recently released its 2013 Power Broker Report, which leads with the statement, “The door to the downturn has been shut and there’s nowhere to go but up.”

The market is showing signs the recovery phase of the real estate market is ending. Despite raising rates it appears according to the NAR, the market is entering a long-term, sustainable phase. However, brokers have reported to the NAR the fundamentals need to stay strong like job growth, and the federal government making positive reforms with Fannie, Freddie and the FHA. There are also concerns over how the new rules for Qualified Mortgages will affect the markets. The new QM rules come out next year and can affect the FHA, VA and federal rural housing down payment requirements.

To learn more about the current market conditions in Redondo Beach, contact the Xavier and Xavier team at, 310-866-7598. The Xavier team will help you navigate through the evolving home buying and selling process.

{ 1 comment… read it below or add one }

Letitia August 28, 2013 at 9:33 pm

Great Article Very Accurate View of the Local Market !


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