The Redondo Beach Pier
After I posted about down payments on home sales in Manhattan Beach, a reader asked if I would do a similar post on Redondo Beach home sales. I apologize for taking so long but I've been out of town packing up my Mom's home so she can move back to the mainland... but that's another story.
Reviewing the percentage of cash used for down payments on recent home sales has pointed out the difference in Manhattan Beach home buyers and Redondo Beach home buyers. I was so intrigued that I'm going to post for Hermosa Beach and El Segundo in a few days to complete the comparison for all the Beach Cities.
North Redondo and Manhattan Beach are opposites in the Beach Cities real estate markets. Manhattan Beach is of course the high end with North Redondo being the entry level. In Manhattan Beach all cash sales made up over 20% of the market. In North Redondo they were less then 10% and in South Redondo they were slightly above 10% of closed sales.
In North Redondo 80 single family homes closed escrow from October 1, 2009-March 7, 2010. Of those 80 homes 6 were cash sales, 50 buyers put 20% or more down while 18 buyers used either VA or FHA funding less then 10% down. In South Redondo 37 homes closed escrow during the same period. 4 were cash sales, 21 were purchased with 20% or more down and 10 were purchased using FHA loans. In Manhattan Beach, of the 119 homes sold, only one property sold using FHA financing, and 115 sold with more then 20% down.
North Redondo: Down payment % for single family homes
South Redondo: Down payment % for single family homes
**As with Manhattan Beach the figures are based on single family homes...
3 comments:
Thanks Kaye.
This is good data.
I would have thought the FHA numbers would have been higher. Based on your data, things are better than I estimated.
Anon 7:31,
Overall Redondo had far fewer foreclosures then expected in the last 2 years when you consider the number of properties that were sold. A lot of short sales but not a huge number of foreclosures.
FHA won't play a big part in the townhome/condo market either because most units in RB don't qualify.
FHA is the way to go right now. Get it before it's gone!
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