No matter what's going on in the real estate market, the difference in perception between buyers and sellers is, how shall I phrase this, quite interesting. As would be expected each side sees whatever is going on in the light most favorable to their position. So, if there's little or no inventory, buyers think the market is slowing down while sellers look at it as an opportunity to raise their price or skimp on repairs. Let's take a look at some facts.
As of this blog post there are 33 homes for sale in Hermosa Beach CA (map above). Most are west of PCH. Prices range for $799K up to $16M with a median price of $1,789,000. Single Family Residences (SFRs or "houses") predominate with 24 listed. The balance are condos - remember that townhouses are technically condominiums from a legal "zoning" perspective.
So far this year through the end of October, there have been 181 closed transactions in Hermosa Beach (average about 18 sales per month). Currently there are 26 properties in escrow (MLS status backup or pending).
So basically here's what the available inventory looks like represented as months of inventory on hand based on closed sales.
Let's drill downa little further and determine more of what's going on.
There are 13 homes listed for 30 days or less, 6 homes listed between 30-60 days on market (DOM), 3 listed for 60-90 days and the rest over 100 days.
What this indicates to me is that the numbers of homes on the market for less than 60 days is about equal to the average number of sales (19 vs 18) while higher priced and or more expensive properties may sit for longer. The data also leads me to the following conclusions for buyers and sellers:
- As a seller, price your home to sell in 30 days or less. With an absorption rate around 50%, you do not want to be on the market for an extended period of time while newer listings come out.
- As a buyer, you may find some deals in the older inventory. Don't fall prey to the trap of just looking at the newest listings to pop up on your mobile device. Make an offer on a property lingering on the market before the price gets reduced and everyone else jumps in.