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In December of 2015, I wrote a blog about the affordability of Hermosa Beach condos. More specifically, I wrote about the large condo buildings on Ardmore and Pacific Coast Highway being the best bang for your buck.  Just six months later, I wrote a follow-up blog about the surge of those condo prices going from $575,000 in December 2015 to $650,000 in June of 2016. A 13% rise in a very short period!  Now, here we are in June of 2017 (12 months later) and I think it is time to revisit this topic to see if prices have continued to surge or leveled off. June 2016 to December 2016 This period was an interesting time for Hermosa Valley condos. Sale prices were surging up to
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Lot sales in Manhattan Beach are always a favorite research topic of mine. These sales can be an indication of an area’s next price driver or sometimes it is just an aggressive homeowner trying to build their dream home. With accelerated Manhattan Beach real estate growth over the past five years, it has been difficult to make a bad buy on lot purchase. On today’s blog, I plan to explore these lot sales in an attempt to guess what comes next and how the dollars and cents work out. Sand Section Sale In March of this year 316 32nd Street sold to an LLC for $2,926,500. The property is a standard full lot at 2,700 sq. ft. zoned to support town
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A bombshell home sale wrapped up escrow last week at 1000 The Strand in Manhattan Beach. The massive south end corner lot officially closed for $21 million becoming the first residential sale over $20 million in Manhattan Beach. In fact, according to the MLS this was the highest sale for a residential property not only for Manhattan Beach, but also Hermosa, Redondo, and the entire Palos Verdes Peninsula. Originally asking $28.9 million (an outrageous price then and now) at the end of 2015, the property was on and off the market over an 18-month period steadily cutting the price all the way down to $23.9 million in January until it accepted an offer on May 1st and closed 30
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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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