Back in May, I wrote a blog post titled: “Big Hermosa Homes with Big Views are Making Record Highs.”
Just as the title states, the blog covered big homes with big views making record highs in elevated parts of MLS areas 148, Hermosa Sand Section and MLS area 149, Hermosa Valley. Now, just half a year later, we see those ripple effects having positive price impacts on surrounding real estate.
And surprisingly, much of the deals are happening right now between November and New Year’s which further demonstrates the strength of this sub-market.
The Tennyson Ripple
The May blog discussed the highest sale of all time in Hermosa Beach.
- 2906 Tennyson Place
- 5 bed, 8 bath, 7,267 sq. ft., 14,918 sq. ft. lot
- Sold Price: $16,000,000
Without question this is one of the most special properties in all of the beach cities. It sold fast and for big bucks. And, as a result of that sale, a new lot listing came available.
- 2840 Amby Place
- 15,003 sq. ft. lot
- Under Contract Asking: $8,775,000
The original asking price of almost $9 million was likely considered unthinkable for a land price before Tennyson closed at $16 million. Now, spending $4 to $5 million to build your own 7,200 square foot custom home comes in lower than the Tennyson’s close price.
Although Amby Place does not have the Tennyson Place view and/or location, it is comparable and you will have something brand new. Without the Tennyson sale, this property certainly would go at a much lower price.
The Marlita Ripple
Another positive ripple effect came from the Marlita Street sale discussed in the previous blog.
- 714 Marlita Street
- 6 bed, 5 bath, 8,390 sq. ft., 9,155 sq. ft. lot
- Sold Price: $6,850,000
As mentioned, this home sold for $6 million in 2016 and with luxury home buyers normally not wanting to pay the same prices as recent purchases, this was a bullish sign closing at $6.85 million.
As a result of this sale, some slightly smaller homes and lots on spec have all made deals and gone to escrow at some very nice prices.
- 661 25th Street
- 5 bed, 6 bath, 5,203 sq. ft., 5,558 sq. ft. lot
- Under Contract Asking: $4,490,000
- 719 24th Place
- 5 bed, 8 bath, 4,585 sq. ft., 4,100 sq. ft. lot
- Under Contract Asking: $4,749,000
Each of the homes above are about half the lot size and half the home, but both went pending in the mid and high $4 millions. This was certainly an impact driven, in part, by the Marlita Street sale.
Just two years ago, a larger lot and significantly larger spec home than these two sold for $4.8 million at 655 24th Place.
These sales show that the sub-market is strong and still rising.
The 24th Street Ripple
This Sand Section home with big views talked about in the past blog had an impact as well.
- 107 24th Street
- 5 bed, 5 bath, 4,100 sq. ft., 2,403 sq. ft. lot
- Sold Price: $7,325,000
This epic view home towering above the Strand gave buyers confidence that Sand Section Hermosa view homes were held in very high esteem, and in some cases, higher than a few Strand sales.
Cue the smaller, higher elevation Sand Section home…
- 246 30th Street
- 4 bed, 5 bath, 3,500 sq. ft., 2,415 sq. ft. lot
- Sold Price: $5,975,000
About 600 square feet smaller than 24th Street, this 30th Street property was able to land virtually the same price per square foot as its ripple effect predecessor on 24th Street.
This North Hermosa walkstreet pocket has very few sales to compare due to how rare a sale is in this neighborhood, so what better way to compare it to than the 107 24th Street sale on a price per square foot basis? This Seller was a huge winner on sale price and can thank these record comps clearing a few months earlier.
The data continues to be strong for newer and larger Hermosa Beach view homes.
Record sales in the first half of the year are creating a nice ripple effect in the market. The continued high sales prices are proving that this sub-market will command big money with the right home…and it is likely here to stay until further notice.