This market update includes Greater South Bay region, including: Carson, El Segundo, Gardena, Harbor City, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lennox, Lomita, Manhattan Beach, Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, San Pedro, Torrance, & Wilmington.
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An interesting study, the C.A.R. 2013 Annual Housing Market Survey published by the California Association of Realtors (C.A.R.) revealed that nearly half (49.5%) of all homes sold in California during 2013 were sold above asking price, nearly twice the share in 2012 (25.9%) and triple the share in 2011 (16.6%).
Chart 1 - Greater South Bay
Chart 1 graphs the median list and sale prices of single-family homes sold in the 20-city Greater South Bay (GSB) during 2013. Note how sale prices exceeded list prices starting in June 2013. Although this chart includes only the GSB, the data shows most homes selling above list price.
Chart 2 - TORRANCE
Chart 3 - Beach Cities
Chart 4 - Palos Verdes
Charts 2 through 4 detail the monthly list price vs. sale price data of major cities in the 20-city GSB. Most of the cities show the median sale price to have increased from January to December 2013. The GSB reported a 26% increase ($406,000 to $555,000).
California Association of Realtors 2013 Annual Housing Market Survey shows how the shortage of housing supply intensified in 2013, leading to heightened market competition and increased multiple offers, with more than seven of 10 home sales (72%) receiving multiple offers in 2013. That is an increase of 57% from 2012 statistics and the highest in the past 15 years. Records show that each home received an average of 5.7 offers in 2013 compared to 4.2 offers in 2012 and 3.5 offers in 2011. It also found that the share of all cash buyers decreased for the first time in 2013 after seven years of continuous increase. More than 25% of all home buyers paid with all cash in 2013. This statistic was 8.8% back in 2001.
The number of international buyers increased from 5.8% of total sales in 2012 to 8% in 2013. More than half (57%) of all international buyers bought property in California as a primary residence, while 31% purchased the property as an investment. Buyers from China, Mexico and Canada made up the majority of international buyers at 34%, 15% and 10%, respectively.
Investors made up 19% of the total sales compared to 16% in 2012. The demand for investment properties grew significantly since 2000 when investment home buyers made only 7% of the total sales.
As prices increased in 2013 and inventory decreased, the share of first-time home buyers fell to 28% in 2013 from 36% in 2012. This represents the third decline in the last four years since the peak in 2009 when first-time buyers represented 47% of all home sales.