Distressed Home Inventory Continues to Decline in Redondo, Hermosa and Manhattan Beach

Distressed home sales and listings continues to go down with both REO and short sale opportunities fading. The number of short sales and bank owned homes in Manhattan Beach, Redondo Beach, and Hermosa Beach have always been relatively low compared with other, more inland, areas and communities, but it appears that the inventory of these homes is at a several year low and looks to remain that way. The days of finding a “deal” in these cities may be a thing of the past. Redondo Beach, due to both the size of the city and the entry level price point options, has far and away the greatest concentration of distressed sales between the 3 cities but numbers decline there as well.

The chart below shows the most recent number of active, pending and sold short sales in Redondo, Hermosa, and Manhattan Beach.

South Bay Short Sales Not the “Deals” They Once Were

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 conversations 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 almost non-existent.  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 above chart shows the “for sale” distressed homes in light green, sold homes in teal, and pending sales in red over the past 10 years.   Needless to say there’s certainly not an abudance these days.

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