How's the market? Well, here's the latest South Bay market update. Despite the fact that we're in what the media has been calling a quote-unquote "Buyer's Market," more and more we're seeing homes sell with multiple offers . Why is that?
Well the answer is simple. It's the predictable law of supply and demand. In 2010, there were many more homes on the market. Buyers had more to choose from. The past 5 months have seen a real drought in inventory and there are more buyers than there are houses for sale.
Three of the last 4 offers I've written have had multiple offers on them. One of my clients is in escrow because their offer was the best of 8 total offers on this property. This doesn't mean that there aren't deals to be had out there. It just means that well-priced homes are selling quickly and in some cases selling for more than the asking price. Of course, if the buyer is getting a loan to buy the home, it will also need to appraise for the purchase price for the bank to lend on it.
In the last 60 days in Manhattan Beach, Hermosa Beach and Redondo Beach there have been 260 homes sold. The average Current List Price-to-Sold Price ratio was 98.1%. This figure indicates that once a home was priced where it should be, buyers were scooping them up. There are currently 295 homes on the market in the Beach Cities. With the average absorbption rate of 97 homes sold per month, that means that there is only 3.04 months worth of inventory available today. This is on the low end for sure.
As always, we recommend involving a professional to help navigate the homebuying process. Happy hunting!