The simple answer, for houses in south Redondo Beach, is yes. In December of 2007, TheMLS showed the 6 month rolling median sales price at $1,082,250, then the plunge began.
Most of the decline in value … 31% … occurred between December of 2007 and autumn of 2011. Prices bounced along the bottom until they hit a low median of $748,250 in October of 2011. Fall of 2011 was the beginning of a gradual increase which, six years later, is now beginning to level off.
March of 2017 saw the most recent high with a rolling median of $1,437,000. That was a 7% year-over-year blip which quickly fell back to the January prices of about $1,300,000. The median has remained relatively stable since then at roughly 25% above the high of 2007.
Location, Location, Location
Compare these numbers to the city of Bakersfield, which currently stands ~23% below the pre-recession high of 2007. Bakersfield is an extreme example, but the new reality in housing is more tied to location than ever. State-wide, and national sales numbers no longer tell the story. Since 2007, determining home values has evolved into a very complex, hyper-local process.
A New Paradigm in Real Estate Pricing
Warren Dow, editor & publisher of South Bay Digs, has been preaching about the onset of hyper-local real estate for years. The Great Recession and ongoing recovery (or failure to recover, depending on where your home is) has proven the concept beyond any doubt. In addition to proximity to work, shopping and family, homebuyers now need to take into consideration the economic strength of the neighborhood before buying. If you are thinking buy or sell, give us a call for hyper-local help.