Why Days on Market Can Be Misleading on El Segundo Homes

By Keith Kyle

I’m sure most MLS systems are different but here in the South Bay the days on market on the CRMLS can be a bit misleading.  Many buyer and agents use days on market as a negotiating tool….the longer the home has been on the market, the more leverage the buyer has to come in low or negotiate other favorable terms.

The problem is that days on market doesn’t always indicate just how long the home has been available and is not necessarily indicative of “active” status.  As realtors when our clients accept an offer we have the option of changing the status to “pending” or “active under contract”.  Pending stops the days on market from accruing, but active under contract does not.  A home can go into escrow on day one, change the status to active under contract (again meaning it’s in escrow) and if it falls out of escrow 20 days later the days on market for the home will show 20.  It’s very misleading as the home has not been available for those 20 days and now puts the seller and listing agent at a disadvantage…..even though it sold the first day.

The other aspect that leads to misinformation is that with this days on market accruing on many home, it does not allow for an accurate picture of the market.  For instance a certain area of town or city itself may show an average days on market for a certain month to be one thing….when many of those homes were not actually available.  It may show days on market at 45 when the reality is that the homes in the community actually go into escrow after 30.

It’s a problem that needs to be addressed as it can change perceptions….both on an individual home and the market in general.

2016 Homes were Slightly More Affordable than in the Third Quarter of 2015

In somewhat a surprise, the CAR has come out with a housing affordabilty study and found that in 2016 homes were slightly more affordable than in 2015 in the third quarter.  Unfortunately that doesn’t impact El Segundo real estate or the South Bay much as we’re located in one of the least affordable areas in the state.

Everything is on the up in the world of El Segundo Real Estate

By Keith Kyle

There’s just not much that’s down in the El Segundo housing market.  The number of homes on the market is up, pending home sales are up, and closed escrows are up.  One other key aspect of the market that’s up is the prices with home prices in El Segundo continuing to rise.  The median home price in El Segundo for March of 2016 was just over a whopping $1,000,000.

Visit our current El Segundo homes for sale page to see the current listings or visit our recent home sales page to see the recent sales in El Segundo and the South Bay

El Segundo CA Home Prices Up in December

By Keith Kyle340_Via_Colusa_front7 copy

The December numbers are in and if there was any thought that the real estate market in El Segundo was leveling the numbers certainly say otherwise.

The average home price in El Segundo for the homes that closed escrow during December was $1,023,000 with a median price of $999,000. Those are big numbers that still shows no sign of slowing or reversing.   See the chart below for the December home sales numbers for El Segundo and the South Bay for December of 2015.

City Homes
Sold
December
2015 Median
December
2014 Median
Year
over Year % Change
Carson  73 $360,000 $365,000 -1.4%
El Segundo 9 $999,000 $735,000 35.9%
Gardena 41 $420,000 $385,000 9.1%
Harbor City 15 $483,000 $467,000 9.1%
Hawthorne 35 $508,500 $667,750 -23.8%
Hermosa Beach 24 $1,475,000 $1,360,000 8.5%
Lawndale 13 $420,000 $415,000 1.2%
Lomita 16 $520,000 $490,000 6.1%
Long Beach 339 $456,000 $395,000 15.4%
Manhattan Beach 34 $2,184,000 $1,689,000 29.3%
Marina Del Rey 31 $905,000 $759,000 19.2%
Palos Verdes Estates 29 $1,456,000 $1,150,000 26.7%
Playa Del Rey 17 $605,000 $482,000 25.5%
Rancho Palos Verdes 48 $1,170,000 $1,135,000 3.1%
Redondo Beach 89 $836,250 $770,000 7.3%
San Pedro 72 $517,500 $492,000 5.2%
Torrance 133 $597,000 $562,000 6.3%
Westchester 34 $951,000 $807,500 17.8%

Where did all the homes in Fusion go?

By Keith KyleFusion South Bay

It seems that nobody is selling in Fusion these days which is a bit unusual as so many owners in the complex weathered some tough years and homes are once again nearing the peak.  As a realtor who frequently sells homes in this great community, it’s always a challenge when the inventory is this low as there’s simply nothing to sell.  Fusion has always been a very unique market as there are often either too many homes on the market, and they all sit until the first one sells (and then they seem to go like dominoes) or there’s no homes on the market.  The appeal of Fusion is the combination of price, location, and age which makes them a great value.  Built in 2006 and 2007, they sit just east of Manhattan Beach but at dramatically lower prices.  Most buyers often start their searches in Redondo Beach or El Segundo, but after looking at what $550,000 or so gets them in those towns, they opt for the very new, very well located Fusion townhomes.

So what’s an interested buyer to do?

  • The first aspect is to find an agent that frequently sells in Fusion as they may have the inside track into upcoming and off market possibilities.  There are 4 or 5 realtors that work fairly extensively in this gated community.
  • Be patient.  As I mentioned above Fusion is a unique market that seems to go in waves.  It won’t be too long before there are several listings
  • Consider the condos, townhomes, and single family homes at 360.  Another alternative is the community known as 360 which is just a bit north.  Contact us for more information as there are new homes as well as resale listings.

 

El Segundo Real Estate Market Update

By Keith Kyle

The market in El Segundo seems to have leveled a bit with the number of homes for sale hovering in the high teens for the past few months.  As of August 25th there are currently active listings in El Segundo.   Although last month saw a significant increase in active listings and this month we see an increase in pending home sales, the numbers are skewed a bit due to the recent release of a number of new construction townhomes on Walnut and Pepper.

El Segundo Real Estate – Market Update for June

By Keith KyleFor Sale Sign

The real estate market in El Segundo continues to be hot with very low inventory and prices continuing to rise.  Summer months are traditionally very active due to the award winning school system and proximity to the coast.  El Segundo has a wonderful small town feel and is conveniently located close to all that Los Angeles and the South Bay has to offer.

  • In escrow – 20
  • Total homes sold in 2014 YTD – 43
  • Average sales price – $796,894
  • Average price per square foot – $514

Home Inventory on the rise in Hollyglen

By Keith KyleEl Segundo homes for sale

It’s been a while since we’ve seen more than just one or two single family homes for sale in the neighborhood of Hollyglen which may start to ease some of the pent up demand in this somewhat secret neighborhood. Although it has a Hawthorne mailing address, this great neighborhood is an unincorporated area and enjoys it’s own award winning school system known as the Wiseburn District. Hollyglen sits just north of Rosecrans and just west of the 405 freeway and has remained somewhat of an unknown jewel in South Bay real estate. I has the feel of Torrance neighborhoods of West Torrance and Southwood, with tree lined streets, schools within walking distance, and offer a very safe and social neighborhood feel. As of April 2, 2014 there are 7 single family homes for sale in Hollyglen, with 3 new construction in the 360 South Bay community, 2 additional homes in Del Aire (but west of the 405 so in somewhat similar neighborhood) priced from $544,000 (Del Aire) to $890,000 for a 4 bedroom new construction in 360. Prices for a 3/2 single family built in the 1950s, which most are, generally range lately between $640,000 and $690,000

Click here to view the current single family homes for sale in Hollyglen CA

Pocket Listings in El Segundo

With the extremely tight inventory of homes for sale in the South Bay, many buyers approach me looking for off market, or pocket listings. Pocket listings and exclusive listings are the hot trend at the moment as eager buyers clamor for a chance to purchase a home without all of the competition. In this market knowing about it first may not ultimately make a difference, but it certainly helps. Many agents seem to be trying to keep listings private as well in the hopes that perhaps they can represent both buyer and seller, which is much easier if fewer agents know that the home is for sale. So what do the terms actually mean? A pocket listing can be anything from a realtor simply knowing about a home that a seller might consider selling and not having a listing agreement, to something coming to the market but not yet on the MLS, to the intentional withholding of the listing from the MLS.  Sign up for information on El Segundo pocket listings.

But is it beneficial to the seller? In terms of price, exposure, etc. the answer is generally no. The more exposure the home gets, the more potential buyers see it, and the likelihood that it will sell for a better price and with more favorable terms for the seller. Eliminate that competition and generally speaking the chances of such favorable terms decrease.

There are very legitimate reasons for exclusive or “pocket” listings and for keeping the property off the market…..work being completed, tenant issues, or simply a seller who doesn’t want the world touring their home. Seller’s just need to be sure that the reasons for keeping a home off of the South Bay MLS are beneficial to them….and not just to the listing agents.

Whether keeping a listing from the MLS is good or bad for the seller ultimately depends on the situation and whose best interest is the primary reason, but working with a top local realtor who has the network and knowledge to seek out these possible opportunities is certainly key for the buyer.

Will Overpriced Homes Slow the El Segundo Real Estate Market?

Torrance HomesI’ve noticed an early January trend in some of the local markets as many homes now seem to be listed at prices that recent sales just don’t seem to justify. Will this overpricing help slow the market down a little as we’re starting to see some homes sit on the market and even eventual price reductions.

We’ve seen the market increase in value dramatically in the past 12 months with values generally rising each month but since late November we seem to be seeing more homes priced well above the current market and well above the pricing trend. Only time will tell what 2014 has in store in the Beach Cities real estate market but as perception is such a real part of real estate, buyers now seeing El Segundo homes sit on the market without selling may mark the beginning of a slow down.