We recently had Robert Kleinhenz, Deputy Chief Economist of CAR, speak at one of our meetings, and the data he submitted really seemed to confirm what I've been experiencing as an agent. What the data seems to indicate, and what I've seen first hand recently, is that there are really two real estate markets in the South Bay....and they couldn't be much more different.
The first is the traditional Beach Cities markets which have had limited impact from the wave of short sale and bank owned homes in some surrounding areas. The neighborhoods of Manhattan Beach, Hermosa Beach, Redondo Beach, Palos Verdes and parts of Torrance have continued to slow and are truly a buyers market, with a good amount of inventory, length days on market, and numerous price reductions.
The second market is in the areas hit by numerous "distressed" properties. As the sales volume seems to be on the rise in the South Bay, much of it is coming from the lower priced areas and surge of short sale and REO properties. Cities such as Hawthorne, Gardena, Lawndale and parts of Torrance are becoming a bargain hunters paradise. Homes are becoming very reasonably priced, are selling quickly and are often selling over asking price. The only problem for potential buyers is that they may no longer have the luxury of time....and may not be able to negotiate. I helped a client write an offer over full price on a home in Del Aire (Hawthorne)only to be rejected as the home went into escrow within 3 days. Another client was interested in the Fusion complex to see both sub 500K homes go into escrow within two days of each other.
Home buyers need to be aware of this dual market situation in the South Bay so that the can be positioned to take advantage of the current market conditions. The strategy in one market, such as writing a low offer, may just not work in the other. Ask your Realtor about the individual markets within a neighborhood, city, or region and get a better understanding of what's really going on. You can also view recent South Bay home sales and home prices to see what is happening in the real estate market you are interested in.
Keith Kyle - South Bay Brokers - Manhattan Beach CA - blog@keithkylehomes.com - www.keithkylehomes.com & www.FindYourSouthBayHome.com
