North Redondo Beach
Over the years, North Redondo Beach real estate growth has been meteoric and a major talking point. This is why I have now taken on a habit of writing about new construction town homes in this area at least twice a year. For reference, check out my past blog posts from September 2017 (North Redondo New Construction Homes Continue to Prices) and November 2016 (Out with Three-on-a-lots, In with Two-on-a-lots). If you want to go back even further, check out my post from February 2016 (The Steady Rise of North Redondo Town Homes).
New Construction Town Home Growth
Three-on-a-lots have been fewer and fewer to come by over the last couple years. Interestingly, their pricing seems to have flattened and settled right around $1.2 million which was first achieved in late 2016. However, there looks to be some well located three-on-a-lots wrapping up construction this year that may take prices a leg higher.
For purpose of this post, I am going to stick with two-on-a-lots in areas 151 and 152 known as the North and South Villas as these sales have been the consistent driving force of pricing in the North Redondo town home market.
Here is a breakdown of new construction town home growth:
2013 High Closing
2014 High Closing
2015 High Closing
2016 High Closing
*2017 High Closing
*Excluding the over sized corner lot sales at 3307 Green Lane and 1918 Dufour Lane that each sold for $1,480,000 in 2017.
I am not including the sales on Green and Dufour because of their massive size, but they were the highlight of my previous blog post. Why? Well, you could see the writing on the wall from these big sales…North Redondo town homes would continue to rise.
Sure enough, only seven months later, a standard size 2,551 sq. ft. contemporary construction at 1729 Harriman Lane #A broke the 2017 record* of $1,400,000 and closed in late April for an astonishing $1,500,000.
Will Growth Continue?
From 2013 to early 2018, new construction two-on-a-lot pricing has climbed a ridiculous 51% in a little over five years. In numerical terms, that is growth of about $100,000 per year! Who knows when it will end?
The Dufour and Green sales of $1,480,000 were signs that developers were pushing bigger (a.k.a. more expensive) to justify buyers paying even higher prices.
This recent record sale on Harriman was similar in livable square feet to most sales but rather than building 25 feet in height, the builder pushed to the maximum height of 30 feet. This allowed for a third level, taller ceilings, and a more stunning aesthetic (a.k.a. more expensive construction to command higher prices).
These town homes are still not the quality of offerings west of PCH but they never will be. Builders are bullish enough to keep building bigger and buyers are obliged to keep paying higher.
Will this growth continue? For now, buyers are voting with their dollars and the answer is a resounding yes.
For whatever my opinion is worth: If you’re a buyer considering these town homes, proceed with caution.