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Hey everybody, it’s Ben Larson with Engel & Vӧlkers. Thanks for joining me here today in this episode of How is The Market?
How is the market? That’s a question I get asked a lot, and it’s not always an easy answer. It depends on a number of things and I’m going to go over that here with you today.
On this episode of How is The Market, I’m going to talk about North Redondo 90278 zip code. I’ll give you a couple stories; examples that I’ve seen out there first hand, what’s going on and actually give you a couple stats as well, that I think play into what’s going on with the market to give us a little bit of an idea.
First one will be Months of Supply and I’ll explain what that is, and Days on Market (DOM) and that’s pretty self-explanatory.
Alright. So, here’s my take on what’s going on in the North Redondo market. I’m going to give you a couple stories here just to give you a first-hand experience. I have buyers currently looking for a two on a lot town home and we’ve made offers, we’ve looked at a lot of different places. They made an offer a couple weeks ago. There were multiple offers; seven different offers and it went well over list price. So there’s still a lot of demand. I’ve seen other listings, multiple offers as well. Most of the two on a lot town homes are getting multiple offers and selling over list price as long as they’re priced fairly well. So that’s what’s going on there, but is that as strong as it has been? I don’t think so. Those same homes a year ago, maybe they would’ve gotten ten or twelve offers. So, I do think there is a little bit of a slowdown; still way more demand than there is inventory but things have changed a little bit. That’s my take on it: on the story side, what I’ seeing first hand, but I’m going to give you a couple stats as well.
So, let’s talk about the stats. We have Month’s Supply. Let me explain what that is first. Month’s supply is basically where you take the number of homes that are available and you divide that by how many homes are selling each month. So, an example: so there’s fifty homes in the market and they’re selling five a month; that’s gonna take ten months. Let’s say they’re selling ten a month, that gives you five months supply. So it’s going to take five months to sell all those homes. So, what are the stats in North Redondo? Let me show you.
So, comparing this July to last July; a year ago. All homes in North Redondo, there was a 1.3 month supply a year ago. Now we’re up to 1.5; that’s up 15%. On single family homes, it was 1.8 a year ago and actually has dropped to 1.3. Town homes: 1.1; very low supply a year ago. That has actually bumped up quite a bit to one and the half [1.5]; that’s a 36% jump. So, overall in the area properties month’s supply has gone up 15%; homes actually went down, and town homes went up quite a bit.
So onto Days on Markets (DOM), I don’t think I need to explain that; you all probably know what that means. Last July, we had 19 days on market, which is really fast. Things are selling quickly and that’s probably just because it took 5 or 10 days just to go through all the offers you got and actually accept something, so it’s probably a lot shorter than that. We now jumped up to 30; that’s a 58% jump. Single family homes were 20 last year. They’re now up to 36 days on market which is an 80% jump. So, there’s lower supply, but they’re taking longer to sell. Days on market for town homes is 20 just like homes last year. That’s jumped up to 29. Still a 45% increase. So overall we had a 58% increase year over year.
So, that gives you a little info on what’s going on in the market. Hopefully that helps you. Maybe it confused you more. Either way, give me a call and I’m happy to walk through and see how it applies to your specific situation, your property, everything is unique. And by the way, if you have a two on a lot town home in North Redondo, give me a call. I have some great buyers, pre-approved, ready to go. We’ll make a fair market offer, so you can call me. It’s Ben Larson +1 (310) 400-0536 and thanks for joining me today.