This market is changing as we speak. Right before our eyes it is very different all of a sudden. Spring is usually a great time to put your house on the market and I still believe it is, but don’t expect the old days’ of the last 4-5 years.
We are still seeing multiple offers believe it or not ~ music to our seller’s ears ~ but they are not the same multiple offers of the last 5 years. Now we are seeing “lowball multiple offers.” And this is after only days on the market when the buyers know there are other offes. We just had one where the buyer actually made their counter offer worse than their original offer and this was in a multiple offer situation. Crazy! They did not get the house!
Pricing is all too critical now for sellers. Staging is critical as well…having “the house on the market” that stands out from the rest and that is priced slightly under it’s competition is the key. Pricing is not as easy to do as it was over the last 5 years. Our number of sales are way down, so there is little sold inventory to compare to. Even though our 2008 sold prices are seemingly 6% higher than this time same quarter 2007, one can not build that into their sales price. I would ascertain that the 6% rise in average price for the Hollywood Riviera this year over last is due to some very high end homes selling this year and thus raising the average. We have also seen the lowest price sale in a long time occur this year -2008- $575,000 for a fixer upper in the lower Torrance side of the Riviera. That is lower than the last low sale of $605,000 which was an even worse location on the Pacific Coast Highway service street of the lower Torrance side of the Riviera. We have quite a diversity of homes in our “designated-by-the-MLS” Hollywood Riviera neighborhood. There are definitely two sides to the Riviera and two separate price ranges that go along with the different addresses.
To date the 90277 (Redondo Beach) side of the Riviera has an average sales price of $1,375K and the 90505 (Torrance) side of the Riviera has an average sales price of $946K. That is a $444,000 price discrepancy. Wow – a 32% price difference.
This is interesting here….the Redondo Beach side (90277 only) had an average price of sold homes this same period last year (Jan 1 – May 2, 2007) of $1,195K. That means the RB side has gone up 14% year over year – same time period. Now the number of sales has gone down from 23 last year to 11 this year…that’s more than a 50% drop. The Torrance side had an average price this same period last year of $951K and it’s $946K this year. They had a drop in their year over year average price of 1/2%. Not much, but not the increase in average price the RB side had. There were 7 houses sold in 2007 Jan – May 2nd 2007 and 9 solds for 2008. About the same which makes their numbers a bit more in line with each other.
Here’s the map of the Riviera with the dividing line in different colors. 