Subscribe to receive our weekly

South Bay Real Estate Blog

Subscribe to our blog
Receive our blog posts directly in your inbox.
* = required field

Thank you!

We'll email you our weekly real estate blog.

The Avenues of South Redondo have become a haven for developers to cash in on profits for new construction homes over the past few years. As a more affordable alternative to Manhattan Beach’s Tree Section, The Avenues have attracted buyers with deep pockets. In 2016, there were some unprecedented new construction sales in the area. Was this a yearly aberration? Would this strong demand continue into the coming years? Let’s take a look at the sales data then and now. 2016 Sales $2,600,000 on 3/11/16 at 213 Avenue E (5 beds, 6 baths, 4,121, sq. ft., 6,011 sq. ft. lot) $2,750,000 on 3/18/16 at 740 Avenue C (5 beds, 4.5 baths, 4,300 sq. ft., 6,577 sq.
Read More

The cost of construction in the South Bay has skyrocketed over the past few years. Much of what I have observed cannot be quantified with market statistics, but through my own experiences with flipping homes and developing from the ground up over the past nine years.  The “feel” of rising costs in the South Bay along with other factors nationally and statewide could have an impact on South Bay real estate prices in the next couple of years. South Bay Construction Increases In 2013, I built a spec home on The Avenues for about $175/sf. Over the years, my five additional spec projects have steadily climbed but if I was to go back to the first
Read More

City Behind The Gates The Rolling Hills market has been struggling over the past twelve months. As noted in my March blog post “Who’s Hot and Who’s Not,” Rolling Hills has been a victim of high inventory and weak sales. Spring and summer brought badly needed sales to the “City Behind the Gates,” but the high-end, luxury homes over $5 million unfortunately received little to no attention. Sales Currently, there are nine active listings asking $5 million or more in Rolling Hills. In 2017, there has only been one closed sale above that $5 million mark. To be fair, Rolling Hills is a small city with a limited and specific buying pool. Many sellers can afford
Read More

Have you ever thought about renting out your home to make some extra cash? I know many of my South Bay clients have. This week I want to share my advice on the notion of renting out single-family homes in the South Bay. Now, I am not a financial adviser or a CPA so always be sure to consult with your team of professionals to understand your individual financial situation. I am offering my opinion after 10 years of practicing real estate investment and brokerage. Renting in the South Bay I am constantly left befuddled month after month seeing homes go up for rent by the beach and up on The P.V. Hill. In many cases,
Read More

If you read my blog post Fearless 2017 Predictions: South Bay Real Estate from January, my first and most confident prediction was that mortgage rates would barely rise. Regardless of rate increases, The Fed was planning to reinvest principle payments into mortgage-backed securities (MBS) to keep home loan interest rates lower. In my follow-up post, Stop Worrying about Rising Home Interest Rates, I discussed how The Fed was continuing this policy with the famous clip from Federal Open Market Committee (FOMC) Statement: The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction,
Read More

Most blog posts, I tend to write about areas that are roaring higher or beginning to slow. It is always more fun to write about bullish and bearish markets, but that doesn’t mean the South Bay markets moving sideways don’t deserve attention. I plan to visit one of these sideways markets today to provide an opportunity for my readers to make decisions about areas that could move one way or the other or just provide the option of certainty and stability. East Hermosa Beach This brings me to East Hermosa Beach, or the Hermosa real estate market east of Highway 1 (a.k.a. PCH). This area is hard to write about as a whole because the lots
Read More

In the aftermath of Tropical Storm Harvey and Hurricane Irma, it got me thinking about Southern California’s greatest natural disaster risk: Earthquakes. I vividly remember the 1994 Northridge earthquake while growing up on the Palos Verdes Peninsula. My parents woke me up to get into the door jams while our home was shaking. It did not last long but I remember watching our entry way ceiling pendant sway from side-to-side for a minute or two. And that was it…no big deal. But, in Northridge and throughout parts of the San Fernando Valley, it was a much different story. What is the Risk in the South Bay? A recent L.A. Times article by Rong-Gong Lin II gave
Read More

New construction town homes in North Redondo will not quit going up! Two-on-a-lots come to market. What happens? Gone. Three-on-a-lots come to market. What happens? Gone. There have been a whopping 56 new construction town homes to hit the market this year in NoRo (2016 builds or newer) and there is only one left on the market. By my estimates, this lone listing will be gone very soon. The NoRo new construction town home scene continues to be the one of the most affordable beach city buys in all of Los Angeles and buyers’ appetite for these new abodes seems to be unwavering. Three-on-a-lots The three-on-a-lot options have not only gone up in price but they
Read More

Summer is coming to an end and it is time to see what is going on in Manhattan Beach west of PCH. After the traditionally busy spring season and slow summer months, we can see how the year is shaping up and what can be expected in the coming fall season. Sand Section The Sand Section represents two thirds of the available inventory west of PCH today. The theme of higher inventory levels has continued since 2016. Although inventory might be a bit concerning if you are a seller, there have actually been 73 sales to date for 2017 versus the 61 sales in same period last year. My blog (The South Bay is Crowded at
Read More

The Monster Lot Towards the end of July, Valmonte saw a rare and very large 22,412 sq. ft. lot come to market in the “Grove Section” at 2915 Via La Selva. The well preserved 1952 built home was charming but likely a gut or a complete tear-down prospect. Developers and dream home lot hunters must have been gushing over the property until they saw the price…asking a hefty sum of $2,475,000! Most buyers probably muttered to themselves, “It’ll never sell.” And who could blame them? The ask price would be the seventh highest sale in Valmonte history for basically a tear-down home. Comparables To further the somewhat shocking ask price was its very comparable neighbor, 2921
Read More