THE PRICE OF THINGS
For the most part, prices do not remain the same. Over time just about everything becomes more expensive. After a while, we all adjust to the higher prices. Gasoline was $1.12 per gallon back in 2002, compared to $4.20 today. A visit to the Magic Kingdom would set a Mickey Mouse fan back $41 back in 2000, a lot cheaper than the $114 a Disneyland ticket is today.
Redondo Beach housing prices are definitely not an exception to similar increases. In the first quarter of 2012, there were 151 closed sales below $900,000; 88% of all sales. It was 49% of all sales in 2016. In 2021 only 18% of all sales were below $900,000 in the first quarter.
The cause of fewer homes on the market in this price range is the relentless appreciation that the local real estate market has experienced since 2012.
The erosion of more affordable housing has been going on for years. The trend will continue as long as the market remains hot. With a severely limited inventory and unprecedented demand fueled by low interest rates, the sizzling market is poised to continue for quite some time.
Closed sales in Redondo Beach are off the charts. 222 homes sold in Redondo Beach in the 1st quarter compared to 136 in the same period of 2020.
For buyers anticipating more homes in the affordable range coming on the market soon, it is just not going to happen. As homes continue to appreciate, it will only become more challenging in the future.
As a real estate agent for over three decades, I have seen many different markets over the years. I am here to help you navigate this market as well, contact me with any questions.
Photo by Shalev Cohen on Unsplash