What a difference a year can make. January and February of 2011 were pretty much a replay of previous years... Closed sales from November and December of the previous year were not very robust and inventory was increasing from the January lows. Buyers remained unmotivated while rumors of the large number of foreclosures that were about to hit the Beach Cities circulated among those in the know.
Here we are in mid March 2012 and haven't seen inventory this low in years. This year March Madness is about more than basketball as buyers seem willing to enter the multiple offer frenzy that is happening in all the Beach Cities.
It was just a few months ago that I was writing about the hit North Redondo townhomes were taking as short sales with big price reductions hit the market at the end of October. Fast forward just a few months and newer 2000+ square foot 2 on a lot townhomes priced under $600,000 seem to be a thing of the past. There are more townhomes in escrow than there are for sale.
Manhattan Beach and Hermosa Beach have the same number of homes on the market as are currently for sale. Hermosa also has more townhomes in escrow than for sale and Manhattan Beach is showing numbers that are not far behind. Only El Segundo and South Redondo have more inventory that properties in escrow.
Rumors abound that conventional lenders are considering loosening up their guidelines a bit even as FHA is raising their upfront fees. A number of our local lenders are pushing the fact that jumbo loans are available and at reasonable rates. Appraisals will remain an issue as there are not many comparable properties available due to the slow and low sale prices of recent years.
Smart buyers and sellers are going to be paying close attention to local markets in the coming months.
Beach Cities: Sold January 2012
Beach Cities: Sold February 2012
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