Hollywood Riviera, Redondo Beach, Palos Verdes, Torrance and other South Bay Beach Cities – Low Inventory Still a Problem – It’s March 5th, 2014 and it’s been almost 2 years now that we’ve had a serious low-inventory problem here in the South Bay. May 2012 is noted as the date that inventory started shrinking and it’s been going on ever since. Our inventory levels here in the Hollywood Riviera are indicative of what’s happening pretty much all over the South Bay Beach Cities markets including Palos Verdes. Currently there are 5 single family homes actively for sale here in the Hollywood Riviera neighborhood listed on our CRMLS. There are 12 houses in escrow. This shows a relationship of how quickly homes are selling. The average days on market of the homes that are in escrow is approximately 40. There are a couple of homes that just recently went pending that really ruin that average because for instance one of the homes which sat on the market for 249 days was grossly overpriced from the beginning and they made 4 price adjustments from their initial price totaling approximately $120,000. With that said, this seller’s market is still finicky when homes are over-priced.
What to do as a Buyer in this voracious market that is moving quickly? BE READY! How do you get ready? Understand what a seller is going to want. The ball is in their court right now and if they have multiple offers what can you do to make YOUR offer stand out. One of the most important things you can do is get your finances in order and get pre-approved with a lender. This process actually can take time these days as lenders are requiring a lot of information from borrowers to make sure they can repay their loans. If you are pre-approved with a lender up front, going into the bidding process will make you feel much more comfortable with what price you are able to offer and what timelines you can work within. If a seller wants a quick close and you are already pre-approved, you can offer a seller that. You need to be the buyer who can meet the seller’s terms as well as what price that seller may be looking to get. It’s not an easy process and one that requires patience. Buyers need to be ready at all times to immediately go and see properties that meet their search criteria as soon as they come on the market. It is not unusual to see 5+ offers on one property right now. Call an experienced real estate agent who is familiar with the neighborhood in which you are looking. They may be privy to homes that are not on the market yet and maybe you can get a leg up on the competition this market is full of now. Good luck.
