I fielded a call from a Hermosa Beach resident this afternoon. He wanted to know if the local market was as ‘hot’ as he thought.
Like many areas, Hermosa Beach has three separate housing markets within the overall market. First, homes priced under $1,000,000 are in high demand. There are currently 7 homes in the price range for sale, and 5 homes in escrow. 37 Hermosa Beach single family homes sold YTD for under $1,000,000. At the current rate of absorption there is enough inventory to last roughly 45 days. That’s a hot seller’s market to be sure.
Homes in the $1M to $2M price range are also experiencing a seller’s market in Hermosa Beach. 9 Homes are currently for sale and 4 homes are in escrow. 40 Hermosa Beach single family homes in the price range sold YTD as of September 26. With no new listings the current inventory will last just over two months–yes, this price range also falls into a seller’s market.
Homes over $2,000,000 are enjoying a hot market with 21 homes sold in the price range YTD. There are currently 10 homes for sale and two homes in escrow in the price range. With a 5 month supply of homes at current absorption rates, the luxury market is in a balanced market tipped in the buyer’s favor.
When someone asks me, “How’s the market?” My reply is it depends on your perspective (whether you’re a seller or a buyer) and your price range.