Hermosa Beach Needs Some New Housing Inventory

By Keith KyleHermosa Beach Walkstreet Beach Bungalow

The Hermosa Beach real estate market continues to be driven by the lack of homes on the market and the continued high demand for this charming coastal town.  With only 1.4 sq miles in the city, there is never an abundance of homes for sale, but recently there has been almost nothing to purchase.  Inventory has been extremely low for almost 2 years and it doesn’t appear that there’s any quick turnaround in the near future which continues to increase the demand for just about every type of home and in all three “sections” of the city.  The market has also been impacted by the extensive building boom going on making it even more challenging for owner/users.  This has meant that homes usually bought as “starter” homes are being swept up by builders willing and able to pay all cash and a quickly close.  We will likely see no real improvement in inventory for the rest of 2014 or beginning of 2015 but hopefully the period of late January, when the market picks up, will lead to an increased number of home sellers realizing just what a good market it is and will finally see the start of a return to a balanced market.