This week, I wanted to have a little fun.
After one of the ugliest beginnings to a quarter on record, the South Bay home market proved to be remarkably resilient throughout the “pandemic” second quarter.
If you missed the blog with quarter two real estate numbers last week, you can find them here.
I thought some readers might find it interesting (and fun) to see the highest sale and the lowest sale in our local marketplaces for some perspective during an unprecedented quarter.
But first, let me share some data reported by the California Association of Realtors (C.A.R.) with statewide numbers for June.
C.A.R. June Sales and Price Report
Existing family home sales jumped an incredible 42.4% statewide which is a record jump and makes for great headlines. However, year-over-year sales were down 12.8%, so even with an amazing June comeback, the statewide market is under-performing last year’s sales.
The under performance might not be as bad as it seems. People want to buy homes and have a safe place to go, but if inventory is squeezed because there are fewer sellers then that could be the cause of the lagging sales.
Statewide prices were up 2.5% year-over-year demonstrating resilience just like our local South Bay market.
Closer to home on a regional level, Southern California saw sales drop the most of any region with a fall of 12.2%. That said, prices rose by 3.3% as C.A.R. credited pent-up demand to the price increase.
What is contributing to that upwards price movement is that Southern California had the biggest drop in supply, with for-sale properties collapsing by 47.3% year-over-year.
Wow…there is that big inventory squeeze.
Statewide and regionally, we are seeing similar numbers and effects here in the South Bay. In times like these, it is good to look at all types of data for clues on the market.
There are so many factors to weigh (i.e. historic, low interest rates), that only time will tell if this market resilience continues or if the fallout from the pandemic becomes too much for the housing market.
Now, onto the fun aspect of this post.
Manhattan Beach Q2 High & Low Sales
Despite the pandemic, there still managed to be an eight figure sale in Manhattan Beach.
- 202 Ocean Drive
- 5 bed, 5 bath, 4,155 sq. ft., 2,701 sq. ft. lot
- Sold Price: $11,000,0000
This stunning custom home located right off the Strand in the highly desired south end of the Sand Section made a deal in just one day of hitting the market in February. The asking price was $12.75 million.
A deal that fast makes you think the offer had to be strong and potentially near the asking price. Well, the pandemic hit, and the property closed April 3rd for a sizable discount to $11 million.
You might think there was a ”COVID-19 discount,” but they supposedly went hard on March 4th, per the MLS, so potentially it was just two shrewd parties working together.
This Seller was not too greedy based on the comps, and $11 million all-cash is a heck of an offer. Conversely, the Buyer made their move acting quickly, but going for a big discount immediately while offering some certainty to the Seller. Well done to both parties.
The low sale was a flip!
- 1520 Manhattan Beach Blvd, Unit B
- 2 bed, 1 bath, 1,095 sq. ft.
- Sold Price: $765,000
This townhome was purchased as a heavy fixer probate sale. It closed for $625,000 at the end of February.
In one of the fastest rehabs I have ever seen, the property was back on the market just five weeks later, shiny and new the first week of April asking $850,000.
That was a reach amidst a pandemic and a locked-down California economy. The flippers ended up doing multiple price cuts and making a deal in May that closed 30 days later at $765,000.
This was probably not the return they envisioned, but a small profit nonetheless during truly difficult times.
Palos Verdes Peninsula Q2 High & Low Sales
The high sale in Palos Verdes was an unfortunate fall for a long-time listing.
- 812 Via Conejo
- 7 bed, 9 bath, 7,826 sq. ft., 25,815 sq. ft. lot
- Sold Price: $5,800,000
This property had been on the market since 2018 with a start price of $9.999 million. After a year on market, the price had been reduced by $2 million, still with no takers.
Armed with a new co-listing agent, the listing restarted in November 2019 at $6.99 million. The Seller held firm until the Coronavirus really hit and made a deal in middle March 2020 (the time of the biggest panic in the stock market) and took an almost $1.2 million discount to an all-cash buyer.
After 18 months, a starting ask of $9.99 million and gradually reducing to a closing price of $5.8 million.
Thanks to an aggressive start, the seller ended up paying for not pricing the home more reasonably; and unfortunately, capitulating at the worst moment in the economy, stock market, and our local marketplace.
Not a true flip, but a seller with a very nice recent remodel.
- 28121 Highridge Road, #307
- 1 bed, 1 bath, 709 sq. ft.
- Sold Price: $437,000
This affordable one bedroom condo in Rancho Palos Verdes came to market in the middle of April and made a deal in only 10 days. It ended up selling over asking by $17,000.
With good style and taste, paired with a low $400,000 price for the area, the listing proved to be a hot commodity on the Hill.
Hermosa Beach Q2 High & Low Sales
Everyone loves a Strand deal and Hermosa had a huge sale in quarter two.
- 3033 The Strand
- 6 bed, 5 bath, 4,046 sq. ft., 4,485 sq. ft. lot
- Sold Price: $12,000,000
This oversized, north end Strand lot first came to market in March of 2019 asking an outrageous $19 million price.
After failing to find a buyer when cutting to $14.995 million, the Seller restarted the listing at $14.8 million in March 2020 and made a deal two months later. It closed this past month in June for $12 million.
Although the $19 million was a pipe dream, a $12 million sale price is still a huge number for a Hermosa Strand property that can be significantly rehabbed or torn down for land value.
Another affordable condo takes the lowest sale for Hermosa Beach.
- 1720 Ardmore Ave, #212
- 1 bed, 1 bath, 691 sq. ft.
- Sold Price: $562,000
This was a super clean one bedroom unit in a good complex. The condo was listed in February and mad a deal mid-March, just 19 days later in the middle of the stock market panic. What happened? Full price.
About as easy as it gets amidst all the turmoil in financial markets.
Redondo Beach Q2 High & Low Sales
For this city, I am sharing two of the highest sales for Redondo Beach. Two for the price of one!
The reasoning here is that one is a true Redondo sale and the other has a Redondo address, but is actually in the city of Torrance.
- 710 Sapphire Street
- 5 bed, 4 bath, 6,082 sq. ft., 9,049 sq. ft lot
- Sold Price: $3,700,000
This is the true Redondo sale that looks to have made a deal off-market as it had zero days on market. At 6,000 square feet, a massive home for South Redondo, this house landed a big price, but a big value at just $608 per square foot.
- 529 Paseo De La Playa
- 4 bed, 2 bath, 3,179 sq. ft., 22,055 sq. ft. lot
- Sold Price: $5,650,000
I would normally leave out Torrance properties with a Redondo P.O. but you have got to love homes on Paseo De La Playa and the views offered to their owners.
Another quick deal made in just one day of being on the market, this home debuted on March 20th. Despite the times, a buyer was ready to jump on a rare, well-priced property on the prestigious Torrance street.
It closed in the middle of June for less than a 3% reduction at $5.65 million.
It would not be right if I did not end with another one bedroom condo as the low sale.
- 538 Avenue A, #3-A
- 1 bed, 1 bath, 758 sq. ft.
- Sold Price: $495,000
This was an ultra-low price for South Redondo and walkable to the Esplanade and Riviera Village. The unit made a deal mid-March and they were able to shave off $34,000 from the price.
That is a nice little price cut with just under two months on market.
You might be hard pressed to find South Redondo real estate on the Avenues trade below $500,000 for some time. A great win for these buyers that utilized the uncertain times to score a deal.
So, there you have it. The highest sales and the lowest sales during one of the craziest quarters on record.
Hope you enjoyed and see you next week.