It is always fun to look back at past blogs to see if trends are still trending or past predictions have actually come true. In February, I wrote a blog post called “The Steady Rise of North Redondo Town Homes” which took a four year look at newer construction town homes in the South Villas. The results were not only impressive from an appreciation standpoint, but the steady rise was supported by numerous sales.
If you read the post and the data presented, I made the not-so-bold call with this quote: “…expect to see continued growth in this area and product type…the rise of north Redondo town homes will not be slowing down any time soon.”
A short five months later, that has proven to be the case.
Not only have prices gone up in the South Villas, but they have surged in the North Villas as well which some consider a less desirable area. The new construction two-on-a-lot town homes are getting bigger and bolder as developers are finally offering more styles over the usual Mediterranean. These homes are adding to the appeal of north Redondo, and bringing in new buyers looking for nice housing at a discount to the beaches of Manhattan, Hermosa, and south Redondo.
As referenced in our previous blog, prices were topping out in early 2016 at $1.25 million. Today, that is old old news. The last four months have brought sales well in to the $1.3 million range. There have been sales of $1.305, $1.310, $1.335, and $1.340 million. And there are two more in escrow at asking prices of $1.349 and $1.300 as well. Take a look…
If you took our prediction as gospel and bought in at $1.25 million the next day, you could be looking at a growth of $50k to $100k to your equity in under five months. The new/newer construction over 2,400 sq ft with 4-bedrooms still remains as strong as ever.
It is hard to convince yourself to buy in on an upswing, and even more difficult when prices have increased so much over the past few years. But this area has proven to be the most consistent, steady, and dependable home plays of virtually anywhere in the South Bay. The demand side for this type of home product remains strong, is proven by sales volume, and is supported by low rates. As long as these factors hold, then we will hold our thoughts like a broken record: this area “will not be slowing down any time soon.”