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Redondo Beach Housing Market Remains Hot

The Redondo Beach housing market is hot. Single-family home sales are strong, town home sales are strong, condo sales are strong. Whether you are in north Redondo or south Redondo, all markets and product types are doing quite well. It is a fabulous time to be a seller.

 

Between the sand of Manhattan Beach all the way down to the bluffs of Rancho Palos Verdes, the city of Redondo Beach has the least inventory of any city at around 1.87 months (anything under six months is considered a seller’s market). That is impressive considering it is the largest incorporated city along the beach/Palos Verdes Peninsula.

 

We believe that Redondo’s recent hot streak is due to a number of reasons: 1) rising school district, 2) diverse housing stock, and 3) relative affordability.

 

Redondo Beach Housing Market Remains Hot

 

  1.       Over the past few years, the Redondo Beach public school system has had a meteoric rise in the California and national rankings. In 2015, Newsweek published its national top 500 list and Redondo Union High School broke into the national ranks at No. 474. RUHS is now nipping at the heels of Mira Costa High School which has long been the best public high school by the beach and just behind Peninsula and Palos Verdes High School up on The Hill. Some publications have even ranked RUHS above Mira Costa in some instances. Not only has the high school had a great run in the rankings, but elementary schools like Jefferson Elementary in north Redondo have been attracting great teaching talent which in turn has boosted its rankings. This has driven a lot of value in north Redondo due to young successful families moving in as a result of the up-and-coming school system.
  1.       The diverse housing stock in Redondo is a huge advantage unique to the Beach Cities and Palos Verdes Peninsula. While areas like Manhattan Beach and the Palos Verdes Peninsula have heavily focused sales that are single-family residences—82.34% and 82.43% respectively as a percentage of SFRs sold—Redondo Beach SFR sales made up only 38.51% of sales. That means cheaper options like town homes and condos made up over 60% of sales in the city. For instance, 107 of the 487 sales (or 21.97%) in all of north Redondo were town homes constructed after the year 2000…newer and cheaper housing stock that can appeal to first-time home buyers. Furthermore, south Redondo had 94 of its 357 sales (or 26.33%) as condos with a majority coming from smaller 1-bed and 2-bed condos in Brookside Village, The Village, and along The Esplanade that appeal to the smaller millennial households that have delayed marriage and children. All of this creates a diverse pool of housing that other areas in the South Bay simply cannot offer.
  1.       Lastly, the Redondo housing market affordability relative to the rest of the South Bay is unmatched. It is obvious that Manhattan Beach and much of Hermosa Beach homes are extremely unaffordable compared to the Redondo market on a price per square foot basis. But, it is interesting to note that even though the Palos Verdes Peninsula is cheaper on a price per square foot basis, housing in Redondo Beach can still be considered more affordable. Take for instance this Rancho Palos Verdes home at almost 3,000 sq ft with 4-beds/3-baths. The asking price is an affordable $503 price per sq ft (and will probably go lower) when compared the new construction 4-bed/3-bath Redondo town home on 2209 Grant #C. This Redondo town home is trading at close to a 10% premium on a price per sq ft basis, but was $1.03 million versus the $1.499 million price on the RPV home. Yes you are getting more house on the cheap in P.V., but you are getting a new construction town home close to half a million dollars off with much less monthly maintenance in Redondo Beach. That is more attainable to a larger pool of buyers.

 

These three items are key to why Redondo Beach has been so hot. If you can offer fantastic schools, diverse housing options, and relative affordability to the surrounding area, then there will be demand. We believe that with millennial demand only set to grow over the years, Redondo Beach still has room to run. Pair that with already low housing inventory under two months supply in the city, and that supply factor should be a self fulfilling prophecy for Redondo to stay strong much like we saw back in Manhattan Beach a few years ago. All I can say is, hang on to your seat belts!

 

It’s Your South Bay. Own It.

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