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.
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 be interesting to see what happens here as one of my buyers walked through and felt it was a “tear down” (as written about in our past blog here). It was purchased by a LLC according to title, so one could assume a major remodel or brand new spec development might be in the cards.
Going from a record high Lunada Bay sale to a record low Lunada Bay sale, 840 Tyburn Road closed at $1,071,500 as a nicely sized 1,555 sq. ft. 3-bed/2-bath home. This is the lowest Lunada Bay/Margate single-family home sale since late 2015 if you can believe it. This corner lot home had many challenges with the existing floor plan, a smaller lot, and tricky upward-sloping grade. All of that made it very difficult to do an affordable addition or even a major remodel. The low price was certainly attractive, but there is a boat load of work to be done on this property. We expect this one to be gutted completely or even a brand new spec home if someone wants to take on a high-risk project.
Rancho Palos Verdes
The Bay Club in Rancho Palos Verdes is starting to show signs of life. This bluff top 240-unit complex with ocean views has traditionally been an affordable retirement-type community. But with the uptick in pricing throughout the South Bay, more and more buyers outside of grandma and grandpa have caught on to the amazing pricing ($650k to $750k) for the views and nice amenities. Two sales closed recently at 32709 Seagate Drive (#B302) and 32679 Seagate Drive (#302 Penthouse B) with one going over ask. Six months ago this complex had a lot of listings and very few sales. Now there are four sales in the past four months, three pending in escrow, and only four available asking above comparable sales. Look for more demand in this complex through spring into summer.
Rolling Hills Estates
Lastly, the new subdivision on Casaba Road, driven in part by D.R. Horton, is picking up steam. If you read my blog D.R. Horton Moves in on Palos Verdes Real Estate you’ll know that there were a few early buyers on the street that purchased in 2014. With the new inventory, I was watching to see if the buyers had earned themselves a little equity. For now, it looks like the buyers bought at market value as one new home has sold and there are two more open escrows that justify the past sale value. No surge in pricing, but this should bring some relief to owners and developers alike as new subdivisions can be fickle. It looks like pricing is set for the long term and it should only be a matter of time until the properly priced Casaba inventory sells.