It is that time of year again!
We are about to say so long to 2021 and begin the new year. What a wild 12 months, and really, a crazy 24 months for our local real estate markets thanks to the Coronavirus.
The past two years I have written similar blog posts to the one this week. For reference, take a look at my 2020 and 2019 posts:
2020 Blog Post: “The Best (and Worst) Performing South Bay Home Markets of 2020”
2019 Blog Post: “The Best (and Worst) Performing South Bay Real Estate Markets of the Decade”
This week I will cover the top five best performing markets, and of course, we will include the bottom five worst performing markets. In this generationally strong home market, it is tough to say that any of the markets are really that bad.
Between the Palos Verdes Peninsula and Manhattan Beach markets covered in this blog, there are 33 submarkets in our MLS system to break down. I will also share how each zip code performed for greater perspective.
Please remember, since we are in December, this is a rolling 12-month average of median price compared year-over-year ending in November of 2021.
Best Performing Submarkets of 2021
- Palos Verdes Crest – Up 34%
- Rolling Hills – Up 30.3%
- Manhattan Beach Mira Costa – Up 30%
- Palos Verdes Drive South – Up 29.3%
- Redondo South of Torrance Blvd – Up 28.6%
P.V. Areas Continue to Outperform
Palos Verdes continues its amazing run occupying three out of the top five spots for best performing submarkets just like in 2020. The Hill seems to be perfectly positioned to absorb buyers needs after the Coronavirus – big backyards, larger homes, and a suburban feel.
Behind the Gates in Rolling Hills might be having the best two-year run of any submarket in the South Bay, ever. While I have not verified that in the numbers, Rolling Hills saw prices rise 21.3% in 2020, followed by an amazing jump of 30.3% this year.
The Rolling Hills market was the worst performing submarket of the decade up only 8% over ten years from January 2010 to November of 2019. However, this gated city looks to be making up for lost time in the most stunning way.
Mira Costa Drives East Manhattan Beach Growth
Last year, East Manhattan Beach had an incredible run, and the Mira Costa submarket continues that amazing run representing the markets east of Sepulveda. After a 24% run last year, it reached 30% growth this year!
Below, you will see how Manhattan Height/Liberty Village did not quite keep pace this year, but with larger lots, big homes, and the some of the best affordability in Manhattan Beach, it is easy to see how the Mira Costa submarket keeps rolling.
Premier South Redondo Soars
After a terrible 2020, down 8.1%, Redondo’s South of Torrance Blvd. came roaring back at 28.6% growth. It was hard to believe that an area housing a coveted pocket like The Avenues were to have such a down year in 2020.
That was obviously an aberration as it is now a top five performer for 2021.
Worst Performing Submarkets of 2021
- Manhattan Heights/Liberty Village – Down 0.6%
- Manhattan Beach Tree Section – Up 5.4%
- Hermosa Beach Sand Section – Up 10.3%
- Manhattan Village – Up 11%
- Redondo Golden Hills – Up 12.2%
Parts of Manhattan Beach Stumble
Shockingly, three of Manhattan Beach’s submarkets make the bottom five list.
That said, almost every market had a solid to incredible year so for the four submarkets on the above list, it is a little bit of a stretch to say they had “bad” years.
The market that truly stumbled, and the only submarket of the 33 that saw negative price growth was Manhattan Heights/Liberty Village. It is likely an aberration but still quite disappointing when considering what other markets are doing.
Manhattan Village makes the bottom five for the second year in a row, which was down 7.2% last year and popped 11% this year. Essentially, a flat market for the past 24 months…this is likely a huge opportunity for savvy buyers to capitalize on in 2022.
Finally, the Tree Section is up 5.4%, a solid year by most measures, just disappointing compared to growth in other markets.
Hermosa Beach Sand Section Underperforms
Again, we are grasping at straws saying the Hermosa Sand Section is a worst performing market when it is up 11%, but for comparable purposes, it is a laggard when put up against other South Bay markets. The Hermosa Sand is in the bottom five while growing at 11% year-over-year…simply incredible!
Redondo’s Golden Hills Not Bulletproof
Last but not least, one of the strongest markets for the past several years, Golden Hills, rounds out the bottom with 12.2% growth. Even though this is “disappointing,” Golden Hills is still one of the safest bets in the South Bay.
How Each Zip Code Performed in 2021
I wanted to add further context to this post so you all can see how amazing 2021 has been to our local South Bay markets.
Of the 33 submarkets covered in this blog, 16 of the markets had OVER 20% growth. That is almost half of the markets growing in price by greater than 20% year-over-year.
Double digit growth was enjoyed by 31 of 33 markets. That is mind-blowing.
Below are how prices performed in 2021 by zip code:
- Manhattan Beach (90266) – Up 15.4%
- Hermosa Beach (90254) – Up 12.2%
- South Redondo, Some Hollywood Riviera (90277) – Up 15.7%
- North Redondo (90278) – Up 17.1%
- Mostly Palos Verdes Estates, Rolling Hills, & Rolling Hills Estates (90274) – Up 22.9%
- Mostly Rancho Palos Verdes (90275) – Up 23.1%
Those are some staggering numbers.
All in all, this is one of the best years on record for the South Bay home market.
Supply continues to be constrained and the beginning of 2022 is set up to keep rolling.
Have a great weekend!
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]