Troubling times ahead for the Hermosa Beach condo market?

Could we possibly be seeing the start of some very tough times for the condo market in Hermosa Beach? Two nicely updated condos, one in the Appletree and the other in the Commodore have been taken off the market recently. The Victorian, only ½ a mile away has also seen two condos taken off the market without a sale. Currently there are two condos in the Commodore for sale and one is approaching 100 days on market.

It has always been my stance that the housing woes affecting California and the rest of the country are less prevalent here in the beach cities. Yes, we do have foreclosures, but far less than what you see in the rest of the country. Many buyers in the beach cities and other parts of the South Bay did not sign those risky mortgages or 100% financed loans. In addition the beach cities remain a highly desirable area to live, therefore maintaining their value.

According to Trendgraphix (Trendgraphix.com), which helps analyze real estate trends. Condos have been selling at about 95-99% of the asking price over the past year. This tells us that we are not seeing great discounts in the Hermosa Beach condo market. The number of condos for sale in a given month average 4, so supply remains low. One immeasurable statistic concerns the seller’s motivation and I have seen that the Hermosa Beach condo owner would rather hold on to their condo than go through a substantial price reduction in order to sell it.

With the holiday season in full swing expect sales to slow further. Yet some buyers will find these next few weeks ideal since there will be less competition out there.

Many have asked about the foreclosed home in the Hermosa Surf that is now bank owned. That unit received a face lift and will hit the market soon. Stay tuned for details.

www.RealtorRichie.com

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