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On September 27, 2016, two new bills (AB 2299 and SB 1069) were approved by Governor Jerry Brown. These new state-wide laws direct California cities to allow Accessory Dwelling Units (ADU), commonly known as “granny flats” or “in-law suites,” to existing parcels zoned as single family residences and multi-unit dwellings. The New Law The law is meant to address California’s housing shortage and ease the weight of surging rent and home prices throughout the state. In a nutshell, the law now prohibits parking requirements (and other restrictions) used by cities to prevent ADUs, along with greatly reducing fees to install utilities that can sometimes reach into the tens of thousands of dollars. Up until now, the
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A new record apartment sale was made (again!) here in the South Bay. If you followed my blog back in September 2016 then you read about the record breaking Sand Section sale in Hermosa Beach (New Era for Hermosa Apartments after Record Sale). Those two incredible sales by the beach ushered in a new era for apartment buildings: huge rents and ultra low cap rates are here to stay. Now, that record Hermosa Beach Sand Section sale is influencing sales east of PCH/Sepulveda. Another flip job on four adjacent 4-unit properties at 1335, 1341, 1345, and 1351 Manhattan Beach Blvd sold for a record smashing $2,875,000 million each. All four properties were sold to one buyer for all-cash. That is $11,500,000
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After a 10-day vacation abroad, I am feeling refreshed and ready for some real estate talk! However, real estate is a fast moving game these days and it takes some time to catch up on what is going on in the local market after being absent for an extended period. Instead, I wanted to share a book I read during my vacation. What is the topic of my vacation book of choice? Demographics of course! Not your idea of vacation reading? No worries, I plan to break it down for you. The book: “Big Shifts Ahead, Demographic Clarity for Businesses” by John Burns and Chris Porter. In my opinion, this is one of the most significant books recently printed that
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It is hard to fathom how in demand affordable homes are in the South Bay. Currently, if there is a home listing for sale on the lower end of the price spectrum for the area, there is massive demand. Redondo Beach There has been a frenzy of activity in North Redondo for anything under $1 million. It seems almost everything is receiving multiple offers. Buyers are competing with double digit offers and homes are selling for five to ten percent higher than list price. Take for instance our agent Frank Sabatasso’s very nice listing on 2106 Rockefeller #E. He received double-digit offers and was off the market in a flash. During the same week, the completely updated home at 2212 Carnegie Lane
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This week I wanted to highlight some notable sales up on the Palos Verdes Peninsula. There were record highs and record lows set in Lunada Bay, along with some interesting movement in Rancho Palos Verdes and Rolling Hills Estates in the past month. Record High Let’s start with the second highest recorded MLS sale on the entire P.V. Hill…ever. The long time Toyota Motor Sales owned property at 1721 Paseo Del Mar in Lunada Bay was listed for $13.9 million and took only 38 days to find a buyer. Not only did it sell quickly for a home in that price range, but it received full price with only a $60,000 termite and repair credit. It will
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It is pretty uncommon to find a beach pad for under $1 million these days. Manhattan, Hermosa, and south Redondo Beach have all had a spectacular price run over the last few years making it difficult for first-time and second home buyers to get in by the South Bay sand. If you can only afford below $1 million, fear not, there are still options that exist! They are just few and far between. And if South Bay beach real estate continues its climb over the next few years, then these options might cease to exist. Between MB, HB, and SoRo there are only 17 active listings available with a price below $1 million. Let’s take a
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There are still a multitude of clients that are extremely worried about rising interest rates. Stop worrying! I want to ease the pressure buyers are putting on themselves to lock up a home ASAP in order to avoid a bad decision or over-paying for a home due to the fear of rising rates. If you remember my blog from January (Fearless 2017 Predictions: South Bay Real Estate), you read my prediction that mortgage rates will barely rise. The Fed will continue to be the biggest purchaser of residential mortgage-backed securities, thus controlling interest rate moves. As long as “the clip” in their FOMC meeting notes stays the same, then we are safe. The most current example proving my
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Now that the dust has settled after the March 7th elections, many hotly contested real estate measures throughout southern California have been decided by voters. There were not only measures that affected the South Bay, but measures in nearby cities and even state-wide legislation that real estate owners would be wise to study. How do these affect South Bay homeowners? Today I will examine Measure C in Redondo Beach, Measure S in the city of Los Angeles, and California Senate Bill No. 1069 approved on September 27th, 2016 by Governor Jerry Brown. Measure C in Redondo Beach Probably one of the most debated measures in the city’s history, Measure C proposed changes in the city zoning ordinances, specifically in
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This week a new construction townhome on 815 Crest Drive closed at $3,425,000. If you recall our October blog post (A Manhattan Beach Deal or Rip-Off), I compared this townhome to its attached counterpart on 814 Highland Avenue that sold for $3,800,000. Both townhomes are gorgeous plantation style with virtually the same square footage, so why the discount? Well, if you are a local then you know that this lot runs east to west so the unit on Crest doesn’t have the views, natural light, and general good feeling that Highland possesses, thus the almost $400k discount. By re-examining the new construction attached complex at 428 23rd Street and 429 Marine Place that I touched on in the
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Buying new construction versus existing homes has become a hot topic here at Manhattan Pacific Realty. For my clients, I almost always default to recommending existing homes as they offer the best bang for your buck when compared to new construction on a price per square foot basis. So is new construction or existing better than another? Like in all things real estate, it depends… North Redondo 2-on-a-lots North Redondo is the perfect example for comparing new construction to existing. There are two-on-a-lots built in the 1990s and there are two-on-a lots being built today. It is classic urban infill and a fabulous case study. Let’s take a typical two-on-a-lot that is 4-beds/3-baths and around 2,500
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