Monday, October 17, 2011

Open House 3011 Johnston Ave Redondo Beach

Saturday October 22 , 2011...1-4 pm

Hard to find... Home plus legal Guest house on a large lot
Don't miss this rare opportunity to own a single family home and a permitted guest house on an oversize lot in the TRW tract of North Redondo. ... The main house is an 1860 sq ft 2 bedroom 1.5 baths with large family room, huge dining room and remodeled kitchen and baths.. The guest house is a charming  300 sq + studio with remodeled bath.

This home is the ideal solution if you are looking for a place for parents, grown children or a separate office area. The terrific home is on an 8300+ sq ft lot that has alley access... The possibilities are endless....

This is a wonderful mid-Century home with a definite Palm Springs resort feel...



Anonymous said...

Hey Kaye:

I just went to Redfin and went through all the listings for 90266. There were 216 listings. Here's the breakdown:

9 Foreclosures
13 Short sales
37 Listings were vacant
24 Listings with very few pictures

83 Distressed

133 Apparently Normal Listings

83/216=38% distressed.

I was wondering if this was a surprise to you? Is this considered normal? What might you expect to be a normal distress ratio?


Kaye said...


Short sale and foreclosure numbers sound right...

I suspect that my definition of distressed might be different from yours. Being vacant and not having a lot of photos doesn't necessarily mean the properties are "distressed"... They could be distressed but not necessarily, so I would revise your distressed property total a bit.

Sometimes photos just don't come out well or the agent just doesn't take good photos...

As far as a property beimg vacant many owners in our area can afford to carry two properties without it being a financial burden.

That said the numbers look pretty normal.. maybe 43-50 that are truly distressed and 177 non-distressed... that makes the distressed total about 20%-25% of available property which is a pretty "normal" market.

Anonymous said...

"Sometimes photos just don't come out well or the agent just doesn't take good photos..."

When I say very few pictures, I'm talking about 1 photo of the outside (sometimes 2). No normal client would be happy about that. So, I think there is a very high likelihood the 24 listings with few pictures are actually distressed.

"As far as a property beimg vacant many owners in our area can afford to carry two properties without it being a financial burden."

With that same reasoning, wouldn't you imagine if a family is wealthy enough to own a home in MB as a second home that they would be wealthy enough to furnish it too? I can't imagine wealthy folks needing to have movers move their furniture between their primary residence and their beach residence every time they want to spend time at the beach.

Again, wouldn't you have to assume the vast majority of vacant listings are actually distressed.

I didn't even try to estimate the percentage of "normal-looking" listings that are actually in distress. With that, maybe the distress ratio is even higher?

What are your thoughts?

Thank you.

Kaye said...

I don't disagree with many of your points but think you are trying to oversimplify a rather complex item.

After many years in real estate the one thing I know for sure is that buyers, sellers and agents have differing opinions on a lot of items.

I know agents who don't believe that putting a lot of photos on a listing is a good marketing tactic. They believe that buyers need to see the inside of a property and that sometimes a buyer might miss a great property if they go by the pictures on the MLS... and they are not altogether wrong.

I know agents who never put out fliers on a sign for the same reason.. they want potential buyers to actually see the inside of the property.

I have sold homes to buyers that they rejected from the photos in the MLS only to finally view the home and change their minds.

As far aa furnishing a property a lot of agents and owners are not into the value of staging. I happen to feel that staging is a very valuable tool, but I know a lot of people who strongly believe it is an unnecessary expense.

I have worked with a number of buyers who don't like staging and would rather see a property that is vacant.

Deciding that a property is distressed based on photos on a listing or furniture in the property is not necessarily a true picture of the state of the property.

I know of a number of homes that are perfect on the interior, have lots of photos in the MLS and have ownmers who are in major financial difficulties. Properties in distress are not always obvious.

Anonymous said...

Thanks for your great insights, Kaye. I wish you the best.

Kaye said...


I believe our definitions about what constitutes a distressed property are very different..

A distressed property, in my mind, is one where the owner is in financial difficulty and needs to sell immediately.

A distressed market is where all segments of the market are in financial difficulty with few sales and a significantly larger than normal inventory that may takes years to clear.

I don't necessarily consider an older home sold for lot value to be a distressed property. Nor do I believe an original 70's home in good condition is a distressed property. These homes are found in all types of markets including those that are rising in value. They are part of the picture of all normal local real estate markets.

If you want to talk about a distressed market than I consider many segments of the market to still be in distress as prices continue to bounce around in many areas of the market in a search for stability.

I think North Redondo is a good example of a market in distress as short sales numbers continue to push down prices for "standard" sale properties.

You have raised a very interesting topic about what constitutes distress in the real estate marketplace.

Anonymous said...

To Anonymous -

You are for getting about all the shadow inventory. The MLS is not a true picture of the realestate market in the South Bay. Our distress level is much higher. I've seen nod's filed on properties in my area and after 2+ years the homes have not come to market. I know people who are not paying their mortgage and living mortgage free - you should be very cautious when considering buying now - it's still too early to know what banks and the government will do with all the shadow inventory market. No doubt, we are going to go down in price.

Kaye said...

I'm not forgetting about it.. but that wasn't part of your original question...

The problem with shadow inventory is that no one knows how much there is in any given area. There are certainly owners in trouble in Manhattan Beach and all the Beach Cities.

While the NOD's remain low in Manhattan and Hermosa, there is a possibility they will increase if the economy doesn't begin to turn around soon. We are looking at 4 years since the market crashed and many people are no doubt feeling the crunch.

Redondo just saw a major dip in values because of an increase in short sales with some big price drops to attract the attention of buyers.

As long as the economy remains dicey at best nothing would surprise me...