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Who doesn’t love Manhattan Beach real estate? Especially at an affordable price. As the premier beach real estate market in the South Bay, Manhattan Beach has buyers that are not as price sensitive in comparison to other markets. Much of the investment thesis is buy high and hold for the long term because of the belief that beach real estate never goes down. But what if you do not have deep pockets and want to limit your risk if there is a short term hiccup in the market or economy? Manhattan Beach Boulevard Condominiums Look no further than two bedroom condominiums along Manhattan Beach Boulevard. Not only are these condos insanely affordable relative to the rest
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The East Hermosa Beach new construction market has been pretty wild over the last two years. Hermosa Beach is a relatively small South Bay city with fewer sales than most neighboring cities, but even with less sales data, it has been a consistent real estate market over the past few years. Check out the year-over-year median price growth over the past three years: 2016 6.27% up 2017 5.74% up 2018 3.49% up When I zero in specifically on the East Hermosa Beach sub-market and the new construction activity, it surprises me with what’s going on. As a result, I will be focusing on East Hermosa Beach’s new construction activity to shed some light on what’s happening.
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With multiple requests to write about “The Lanes” in Rolling Hills Estates, here you have it! The city of Rolling Hills Estates is tricky as the city boundaries spread over five MLS areas. Today’s blog will cover the largest portion (about 70%) of Rolling Hills Estates – the Palos Verdes (P.V.) Drive North MLS area. Before we get started, check out my Palos Verdes page to view the mapped boundaries of the entire Hill and respective MLS areas. Also, check out the P.V. Drive North page to learn more about the neighborhoods discussed today. Masongate The Masongate area is highly coveted for its large lots in its small, quiet pocket of the Palos Verdes Hill. Sitting
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Bruce Norris is generally regarded as one of the best California residential real estate forecasters. Not only is he self-taught in real estate economics and data, but he is also a real estate investor himself. He is a great source because he depends on his own predictions to correctly make decisions for his business. For further background, check out a previous blog post I wrote on Bruce Norris predictions here. Bruce Norris Event This last weekend I attended Bruce’s event, “California Real Estate: On Borrowed Time” in Riverside. Upon arrival we received a 250-page book with hundreds of different charts, illustrating that he really does his homework. These charts provided data on various topics such as
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During my time in real estate, I have learned certain clues give me a fast and fairly accurate analysis on the market. One of those clues is homes resold in a short period of time. I am not talking about flips where an investor adds value to a home, but rather resales where a home owner has done absolutely nothing. In the hot market of 2012-2015 I saw short term resales (12-24 months later) turn breathtaking price gains all with the owner barely lifting a finger. In a flat market, you will see little to no price gains on short term resales. And obviously, struggling markets on the decline will see short term resales go for
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As the South Bay home market begins to wake from its holiday slumber, I went back to study this normally slow season. From my research, I found an unusually high amount of sales in the luxury home market. In only 42 days, from December 1st to January 11th, the luxury home market had some MAJOR sales! Hermosa Beach Lot Sale 1918 The Strand Asking Price: $7,200,000 2,547 sq. ft., 2,382 sq. ft. lot Sold for $6,800,000 Some might believe this sale will be the benchmark for land value on The Strand in 2019. With its bullseye location in the middle of Hermosa, many buyers will believe that similar lots to the less desirable south will sell
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The Interest Rate Effect Interest rates are the most important topic facing the residential real estate market in 2019. This past year, The Fed allowed interest rates to rise too fast in hopes of slowing the economy. As a result, the real estate market has taken a hit. Although The Fed will be more cautious this year, Jerome Powell and his directors will raise the federal funds rate one to two additional times. The stock market will close higher in 2019 and in turn, bond market yields will rise. As a result, 30-year mortgage rates will climb to 5 percent in the second half of the year for the first time since 2011. This will hurt
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Happy New Year! As we begin 2019, I am starting to make my annual predictions blog for the year. Until, then, I wanted to explore a few topics relevant to the New Year. Real Estate in January In my opinion, January is always a funky month in residential real estate as buyers and sellers are returning from the holidays and vacations. I believe there are great opportunities for both sides during this time, you just have to play your cards right. Buyers For buyers, January is a great month to score a deal. Here are a few reasons… Most buyers are focused on New Year’s resolutions and returning from vacation. Competition is still very low until
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Every January I write my fearless predictions for the South Bay real estate market in the upcoming year. As the year comes to an end, I like to hold myself accountable and show readers how my predictions actually turned out. If you want to refresh your memory, check out my predictions for 2018 here. Let’s see how I did… Prediction Recap: Mortgage Rates Will Rise Moderately Prediction: I predict a rise of about 0.25% with a maximum jump of 0.5% before The Fed would step in to get rates under control. Recap: I was a little off, but, by year end, I could be close depending on where rates end up. According to FRED (Federal Reserve
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As we approach the end of the year, I thought it would be beneficial to review sales and median prices from 2018. This data includes median income and how it relates to affordability. South Bay Median Prices and Closed Sales Home sales are down, not just in California, but all over the nation. Median price increases are also decelerating. How is this impacting the South Bay market? Take a look at these numbers from November YTD (year-to-date). Every area mentioned above shows that sales are down in 2018. In my opinion, this is a direct result of rising interest rates pushing buyers to the sidelines. On the flip side, every area shows that prices are up.
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