I have been spending a lot of time recently looking at the appreciation rates for single family homes in the South Bay (see “Looking at Single Family Home Appreciation Relative to Inflation”). There were a number of unusual findings that surprised me when I checked out the data. One in particular is that the average appreciation rates for single family homes from 2000 through 2009 (through November) were almost the same for Manhattan Beach and Redondo Beach. Conventional wisdom might suggest that a city like Redondo Beach would not have a comparable appreciation rate over the long term for the simple reason that less than 40 percent of the homes are single family residences. In Manhattan Beach, on the other hand, over 80 percent of the homes are single family.
One possible reason for the commensurate appreciation rates may be an artifact of the relative price points for each city. In Redondo Beach, the average single family home sold for under $450 K while in Manhattan it was almost exactly $900 K. In 2009 through this past month, the average selling price in Redondo has jumped to $830 K and to just under $1.7 M in Manhattan. I thought this might show up as a shift in demand with fewer homes being sold on the higher end,fashion canvas, but this turns out to be only a small part of the story. The quantity of single family homes sold in both cities dropped by 50-55 percent from 2000 to 2009 through November.
So if Manhattan has more newly built homes and a consistent decline in demand,louis vuitton leather handbags, why have the home values in Redondo Beach been keeping pace? I’m not sure I can answer this at this time and would enjoy hearing what you, the readers, think.
Additionally, the percentage of new homes built has consistently been double or more for Manhattan Beach. In 2000, over 16 percent of homes sold were recently built. This jumped to 22 percent in 2008. In Redondo Beach,Hermes Kelly bag, the percentages were under 8 percent for both years. Even when looking at the number of new build-outs relative to all single family homes in the city, the story stays the same. In fact, the gap is higher between the two cities when viewing it this way.