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The second half of August can really slug along in the South Bay as agents and clients are wrapping their last summer vacations. Most agents will hold off from listing their new inventory until Labor Day. For this week’s blog, I will be diving into some interesting South Bay sales that all occurred last week. Manhattan Beach 2200 Harkness Street sold for $2,780,000 (5 bed, 5 bath, 3,578 sq. ft., new construction) This Liberty Village new construction sale is a perfect example of Manhattan Beach buyers’ insatiable appetite for new construction. In April, a comparable sale at 1401 Lynngrove Drive sold at a record price of $2.68 million, but Harkness, only four months later, cleared at
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In North Hermosa Beach,  it is very tricky to generalize market value. There are a variation of lot sizes, town homes, property views, and income properties, which makes it difficult to give a perfect breakdown of this sub-market. That said, the majority of single-family home sales in this area sit on a 2,500 sq. ft. lot, so for today’s blog, I will focus on these properties to give you a general guide on the area’s value. Newer Construction with Views As many readers have learned over the years, new construction drives the market by the beach. Since the blow-out sale of $5.25 million at 230 34th Street back in 2016, the market has delivered three additional
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Every year around this time I like to write about undervalued areas in the South Bay. There is no substantial evidence as to why these areas are undervalued. This blog post is just an active real estate agent making a gut call on areas that are lagging the rest of the market or are just plain cheap. If you want to test my gut feelings, I will recap my blog post from last year on what areas offered value. For reference, check out last year’s value area blog here and also the recap of 2016 here. Value for 2018 Finding value in the Beach Cities and Palos Verdes has proven to be difficult this year. Most sub-markets
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The Strand Market In 2017, there were 17 home sales on The Strand in Manhattan and Hermosa Beach. Now, five months into 2018, Strand sales are a grand total of ZERO. What’s interesting about the 2017 Strand market is that of those 17 sales, only three occurred before June. So, a rapid clip of 14 sales happened between June and December. Perhaps the time leading up to tax season affected Strand buyer decisions? With little activity the first half of this year, it has created some healthy competition for some spec sales. Additionally, it has made some existing owners more realistic, and dare we say…asking fair prices? Hermosa Beach Benchmark 2017 Sale: 1540 The Strand, Hermosa
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If you read the title and thought, “Well, if the sale was not in Manhattan Beach then it must be the $40,000,000  home on Buggy Whip Drive in Rolling Hills.” That is a good guess but nope, not even close! Hermosa Beach? Nope. Redondo Beach? Getting warmer… The answer is Torrance. The Record Sale Last month, 417 Paseo de la Playa, Redondo Beach 90277 sold for a record $22,650,000. But wait, I thought you said Torrance, Richard? It is in Torrance! The property sits in an area little written about in my blog, but very much a South Bay location, known as Hollywood Riviera. This sub-market (area 128 on the MLS) is within the city of
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Mortgage Rates Will Rise Moderately One of the biggest questions in residential real estate is whether or not mortgage rates will rise. This coming year, 30-year mortgage rates will rise very moderately from their year-end rate of about 4.00%. 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. The reason rates did not rise last year, and why they will only rise moderately this year, is due to the fact that mortgage rates are impacted by demand for mortgage-backed securities. For the majority of last year, The Fed reinvested their principle payments and bought up the bulk of residential home mortgages.
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After recapping the 2016 value areas in last week’s blog, I would like to point out some areas in the South Bay that I believe present solid value for 2017. If you are shopping in the below mentioned areas, then have no fear as they will have upside potential. Redondo Beach El Nido east of Inglewood Avenue Just like the 2016 value areas El Nido makes the list again! This time it is homes east of Inglewood Avenue. Now that west of Inglewood Avenue has had a nice run, buyers will sacrifice and jump to the other side of the street. It is already happening, but has potential to run even more in the next 12 months. Just be careful and
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We are right around the corner from kicking this June gloom and heading straight into the South Bay summer. This marine layer reminded me of a 2016 June blog titled Value Areas in the Beach Cities. In this blog I examined areas offering a ton of bang for your buck relative to nearby markets. Today, I want to re-examine those areas and share value areas for 2017. MB Liberty Village Starter Homes In 2016 Liberty Village offered great value relative to the other areas in the city of Manhattan Beach and was primed to continue running. Here are some of the comparables from then and now… (2016) 2204 Manzanita fixer sells for $1,395,000 (2017) 1408 Manzanita fixer sells for $1,450,000 If you jumped
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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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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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