Are Contingent Offers Starting to Be a Workable Strategy?

By Keith Kyle

In the past two months I’ve had three contingent offers accepted.  Not only were the offers accepted but my clients homes were not even on the market yet.  I spent much of 2017 submitting contingent offers for these clients only to be rejected time and time again.  Often times we were competing against 15-20 other offers and some were all cash….we didn’t have a chance.

So is that changing?

It may just be timing, luck or the right situation, but sellers seem to be considering contingent offers in the current Redondo Beach real estate market.  It’s key to submit a VERY strong offer in regards to price and terms, but sellers may be realizing that the buyer’s homes will likely sell fairly quickly.

For those that don’t know what a contingent offer is…..there are many situations in which a home buyer needs to sell their home to have enough money for the down payment and to qualify for the loan.  When you submit an offer that requires the buyer to sell their home to make it work…that’s a contingent offer.  It adds a whole additional level of uncertainty to the sellers of the home being purchased.  No longer is their just a home inspection, appraisal and loan on their house……but likely a home inspection, appraisal, and loan on the buyers sale as well.  The uncertainty is the reason most sellers won’t consider it unless it’s the only option.

In a sellers market with multiple offers and high demand, getting a contingent offer accepted is a long shot at best, but maybe the recent wave of acceptances is a sign that things are changing slightly.

Redondo Beach September 2014 Home Prices

The real estate market continued to show strong numbers in Redondo Beach CA with 88 home sales and a median home price of $785,000.  Housing inventory remained low and demand continued to be strong in Redondo.

City Homes
Sold
September
2014 Median
September
2013 Median
Year
over Year % Change
Carson 38 $363,000 $360,000 0.83%
El Segundo 9 $526,250 $730,000 -27.91%
Gardena 34 $365,000 $352,500 3.55%
Harbor City 13 $465,000 $375,000 24.00%
Hawthorne 35 $495,000 $473,500 4.54%
Hermosa Beach 17 $1,020,000 $1,032,500 -1.21%
Lawndale $400,000 $432,500 -7.51%
Lomita 8 $522,750 $430,000 21.57%
Long Beach 314 $420,000 $388,500 8.11%
Manhattan Beach 32 $1,950,000 $1,675,000 16.42%
Marina Del Rey 31 $797,000 $848,000 <-6.01%
Palos Verdes Estates 34 $1,575,000 $1,306,000 20.60%
Playa Del Rey 24 $534,050 $467,000 14.36%
Rancho Palos Verdes 51 $1,038,000 $1,053,000 -1.42%
Redondo Beach 88 $785,000 $750,000 4.67%
San Pedro 56 $448,250 $430,000 4.24%
Torrance 117 $530,000 $525,000 0.95%
Westchester 34 $869,000 $724,000 20.03%

July 2014 Median Home Prices for Redondo and the South Bay

By Keith KyleHollywood Riviera homes

July 2014 saw some big numbers in terms of both number of homes sold as well as median prices.  Redondo Beach had 97 sold homes at a median price of just under $1,000,000 which is a pretty significant number for this coastal community.  Most other South Bay cities also saw some significant year over year increases in prices with the exceptions being Torrance, Marina Del Rey and Playa Del Rey.  To see the actual homes sales in each city visit our recent home sales price and information site.

City Homes Sold July 2014 Median July 2013 Median Year over Year % Change
Carson 48 $382,500 $350,000 9.29%
ElSegundo 15 $872,000 $797,000 9.41%
Gardena 50 $385,000 $332,500 15.79%
HarborCity 13 $480,000 $465,000 3.23%
Hawthorne 51 $505,000 $400,000 26.25%
Hermosa Beach 26 $1,230,000 $1,097,500 12.07%
Lawndale 8 $412,000 $331,250 24.38%
Lomita 13 $555,000 $452,000 22.79%
Long Beach 330 $400,000 $365,000 9.59%
Manhattan Beach 43 $1,795,000 $1,521,250 18.00%
Marina Del Rey 33 $757,500 $862,500 -12.17%
Palos Verdes Estates 51 $1,600,000 $1,291,000 23.93%
Playa Del Rey 23 $507,000 $512,000 -0.98%
RanchoPalos Verdes 54 $1,069,000 $1,100,000 -2.82%
Redondo Beach 97 $865,000 $758,000 14.12%
San Pedro 49 $440,000 $420,500 4.64%
Torrance 142 $540,000 $576,250 -6.29%
Westchester 48 $777,500 $715,000 8.74%

South Bay Surf Report

Interested in the surf?  Take a look below to see the current surf conditions in the El Porto area of Manhattan Beach.

 

Perfection in Manhattan Beach

This home recently sold for over our list price.

If you’re searching for the quintessential beach cottage…. welcome home.  This warm and inviting Manhattan Beach single level home is as charming on the inside as it is from the outside and has been extensively upgraded and expanded and embraces the feeling of life at the beach.   From the moment you enter the  home you are surrounded by a design inspired by coastal living and the beach lifestyle.  Perfect for entertaining, the kitchen opens directly to the living, family and dining areas and offers direct access to the private patio and backyard.   Features include oak hardwood floors throughout, beautiful gas fireplace, remodeled kitchen with stainless steel appliances, custom cabinetry and granite counters, remodeled bathrooms, expanded bedrooms, beautiful front and rear yards, partially covered patio, 2 car garage and so much more.  The home was expanded in the last few years and the owners took great pride in making every space larger and more livable.  Both guest bedrooms are large and bright and the master suite enjoys a walk in closet, beautiful bath, recessed lights and direct access to the backyard patio.  All this and Meadows elementary just 2 blocks away.

What’s so great about the Manhattan Beach “sand” section anyway?

By Keith Kyle

The answer to the question, “what’s so great about the Manhattan Beach sand section anyway?” can be summed up with 3 words……Location,Manhattan Ave location, location. The “sand” section of Manhattan Beach gets it’s name from the proximity to the beach. The area stretches from Hermosa Beach to the edge of Manhattan known as El Porto. In this wonderful area you’re never far from the beach, often walking distance to shops, restaurants and bars, enjoy almost perfect weather, are treated to spectacular sunsets, and often have great ocean views. The biggest drawbacks to this area are the price and the limited space as land is at a premium and just about every inch of lot is taken up by homes. Gone are most of the beach bungalows that actually fit on the lot and most have been replaced by larger and larger homes as wide, deep and tall as they can possibly be. Some of the unique areas are the “walkstreets” in which the homes front a pedestrian only “street” which allows for less noise, no cars, and a much safer atmosphere and the lack of cars make views that much more impressive. El Porto, the most northern area of the sand section, is the most affordable as many of the typical 30×90 foot lots were split and the smaller lots equal smaller homes equal smaller price tags.  Without question the most sought after property in the sand section are the very rare and always impressive homes located beach front on “The Strand”  These homes offer the high end luxury buyer endless and unblockable ocean views.

Sand-Section       Strand-Balcony       1712-The-Strand-Manhattan-Beach

The sand section homes for sale, pending home sales an recent closed escrows.

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It wasn’t too long ago that most buyers had heard all of the horror stories involved with short sales and wouldn’t go near them. In many Foreclosure-signconversations I explained to buyers that if they were looking for a “deal” a short sale was definitely the way to go. Unfortunately that just doesn’t seem to be the case any longer as short sale inventory is way down and anything initially priced below market value is quickly in escrow with multiple offers and most seem to be selling at numbers much closer to market value. According to Keith Kyle, a South Bay short sale specialist, “it’s a combination of lower inventory and a much more streamlined short sale process in which most short sales are going through. No longer are buyers overly cautious about potential short sales taking 6 months or more like they had in the past.” While short sale may not be the bargain they once were, they still are the likeliest source of well priced homes if and when you can find them. For a current list of foreclosures visit either our Redondo Beach foreclosures site, or our South Bay foreclosures and short sales listings.

The  chart below shows the “for sale” distressed homes in light green, sold homes in teal, and pending sales in red.

http://redondobeachrealestatehomes.com/short-sale-bargains/

Is the South Bay Real Estate Market Slowing Down?

If August home sales numbers were any indication the market is continuing to go crazy, but from on the ground experience the South Bay real estate market is beginning to slow down a bit.   There are likely several factors that seem to be driving this slowing market:

  1. Seasonal changes:  The market always slows a bit once schools are back in.  Summer home buyers eager to get a home in certain school districts keep the market buzzing in June, July and August.
  2. Interest rates:  While still historically fantastic, it’s taking buyers a little while to grasp that we’re no longer likely to see rates in the 3% range, or even the mid to low 4% range.  Rates had to adjust and although rates are still tremendous, borrowers are still suffering from a lowest rates ever hangover.  In time the current rates will become the new normal and buyers waiting on the sidelines will once again jump into the fray.
  3. Prices:  August year over year prices in the area neared a 25% gain….in just a year.  That’s a pretty incredible increase and between the increases and many buyers frustrated with a market stacked against them have decided to sit it out for a while and hope that we eventually reach a balanced market.

Whether all of this indicates a trend towards a cooler market, or is just a temporary correction remains to be seen, but either way 2013 has been one of the quicker rebounds in real estate that we’ve ever seen.

HB-16th-Street-4th

Redondo Beach Open Houses This Weekend

If you are looking to purchase a home in the South Bay and want to visit open houses in Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, El Segundo and surrounding areas, you’ve come to the right place.  Our South Bay open house list has weekly schedules for all South public open houses. Take advantage of our HomeFinder and have new listings emailed to you daily. Open House schedule subject to change without any notice.

 

August Home Sales Show Big Numbers in the South Bay

The South Bay saw big numbers in August 2013 with impressive increases in both median home price and the number of sales in many of the local communities.   Hermosa Beach posted some of the most impressive numbers with 30 closed sales in this small beach community and a median home price of over $1.2M.    “This is a big number but it’s especially impressive as it’s a 40% increase over median home prices in Hermosa Beach in August of 2012” according to Hermosa Beach realtor Keith Kyle.  Other cities enjoyed significant gains as well. Click on any link below to view the homes sold and home sales prices for August.

Gardena
Hawthorne
Hermosa Beach
Hollyglen
Hollywood Riviera
Lawndale
Manhattan Beach
Palos Verdes Estates
Rancho Palos Verdes
North Redondo Beach
South Redondo Beach
San Pedro
Southwood, West & South Torrance