From the desk of Greg M. Ingerson, Attorney At Law
As we head into Fall, South 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 133 homes for sale in South Redondo and 30 sold. Translation, under current market conditions, in any given month, you have about a 1 in 4 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.
The Numbers Don’t Lie, Here Is What’s Happening:
On September 1, 2009, there were 133 active listings for sale in the South Redondo Market: 45 Houses; 48 Townhouses; and 40 Condominiums.
In the past year, there were 270 homes sold in South Redondo (between 9.01.08 and 8.31.09): 89 Houses; 102 Townhouses; and 79 Condominiums.
What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2 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 182 days, Townhouses will be on the market an average of 169 days, and Condominiums should be on the market an average of 182 days.
Market Recap for the Month of August, 2009
When one compares the August results with the yearly result, we find that there is an approximately 4.4 month inventory of homes for sale in South Redondo.
Broken down by specific property type, we find that there is a 7.5 month inventory of Houses, a 4 month inventory of Townhouses, and a 3.3 month inventory of Condominiums on the market in South 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 August 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 more information regarding the South Bay 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 24 Hours a Day.
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South Redondo Home Sales by the Numbers
30 sold in August 2009
23 sold in August 2008
133 Current Active Listings
45 Houses
48 Townhouses
40 Condos
30 Sold in August 2009
6 Houses
12 Townhouses
12 Condos
36 Contingent & Pending in August 2009
12 Houses
18 Townhouses
6 Condos
13 Expired in August 2009
4 Houses
4 Townhouses
5 Condos
23 Sold in August 2008
2 Houses
11 Townhouses
10 Condos
29 Sold in August 2007
10 Houses
13 Townhouses
6 Condos
29 Sold in August 2006
10 Houses
13 Townhouses
6 Condos
35 Sold in August 2005
14 Houses
15 Townhouses
6 Condos
38 Sold in August 2004
9 Houses
18 Townhouses
11 Condos
50 Sold in August 2003
12 Houses
22 Townhouses
6 Condos
51 Sold in August 2002
14 Houses
24 Townhouses
13 Condos
54 Sold in August 2001
19 Houses
23 Townhouses
12 Condos
48 Sold in August 2000
16 Houses
19 Townhouses
13 Condos
21 Expired in August 2008
5 Houses
10 Townhouses
6 Condos
6 Expired in August 2007
2 Houses
4 Townhouses
0 Condos
15 Expired in August 2006
2 Houses
10 Townhouses
3 Condos
5 Expired in August 2005
0 Houses
5 Townhouses
0 Condos
9 Expired in August 2004
1 Houses
7 Townhouses
1 Condos
6 Expired in August 2003
5 Houses
0 Townhouses
1 Condos
7 Expired in August 2002
4 Houses
3 Townhouses
0 Condos
6 Expired in August 2001
3 Houses
3 Townhouses
0 Condos
10 Expired in August 2000
3 Houses
1 Townhouses
6 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
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