Palos Verdes is a massive residential housing landscape.
Not only do the expansive borders prove to be a challenge in learning the market, but home values are further complicated by winding roads and rapidly changing topography that increase or decrease value by significant numbers…you need to be careful and diligent.
For perspective on the size of the market, in the month of July, the Palos Verdes Hill had 881 single-family home sales.
Compare that to July single-family home sales in Manhattan Beach coming in at 423 or the large city of Redondo Beach’s 431 sales. The Palos Verdes Peninsula doubled those markets’ SFR sales volume.
To be fair, Manhattan Beach and Redondo Beach have large condo/townhome housing stock as well, but even adding in those numbers along with the small amount of P.V. condo/townhome sales, the Palos Verdes residential market is still the largest relative to is peers.
Once a sleepy suburb with beachgoers and commuters avoiding the Peninsula, the Coronavirus pandemic has highlighted the benefits Palos Verdes and the lifestyle it offers.
The scale of the P.V. market can be intimidating for many buyers, and if you are unfamiliar or worried about “being far from the beach,” then making the leap of faith to Palos Verdes can oftentimes be a difficult decision.
For the “too far” contingent, a less intimidating area has been the Valmonte submarket in Palos Verdes Estates.
It’s proximity on and off the hill, and to local Beach Cities, makes the move to P.V. much easier for some when considering Valmonte. Long before the pandemic, Beach City residents could not name Montemalaga or Point Vincente submarkets, but many sure knew about Valmonte.
Today, the pandemic pushed Palos Verdes real estate much higher, while the already well-known Valmonte market saw its growth put into hyper speed.
Over the last few months, Valmonte prices seemed stretched until the latest record sale might breathe even more life into this already very active market.
Sales Maxed Out at $3 Million
In past posts, you might see that I speak about new construction driving specific marketplaces.
For instance, spec home builds in the Manhattan Beach Tree Section or new construction two-on-a-lots in North Redondo are major drivers of value in those areas. Agents and sellers look to the highest/newest sales and then discount down to find value of their home.
With the case of Valmonte, over the past decade, nothing had sold on the MLS above $4 million.
The lack of a “big sale” put a cap on the market’s growth limiting it to a slow and steady pace. Of course, it surged along with every other submarket during the pandemic, but it lacked that truly monster sale to help the area “gap up” higher.
Pre-pandemic, Valmonte saw some if its larger move-in ready homes sell…
- 3649 Navajo Place
- 4 beds, 4 baths, 3,908, 13,394 sq. ft. lot
- Sold Price: $3,600,000
- 3116 Via La Selva
- 5 beds, 6 baths, 5,273 sq. ft., 12,495 sq. ft. lot
- Sold Price: $3,720,000
Quite simply, these were some of the only oversized lots with big homes and they could not even come close to breaking the $4 million mark. Less significant homes would still need to discount appropriately.
Current / post-pandemic, we began to see homes and lots not quite as large (one almost brand new) start to push higher thanks to unprecedented demand.
- 3820 Via Palomino
- 5 beds, 5 baths, 3,807 sq. ft., 10,710 sq. ft. lot
- Sold Price: $3,325,000
- 112 Via Las Vegas
- 5 beds, 6 baths, 3,800 sq. ft., 9,500 sq. ft. lot
- Sold Price: $3,425,000
- 601 Via Gorrion
- 5 beds, 5 baths, 3,860 sq. ft., 10,169 sq. ft. lot
- Sold Price: $3,800,000
The previous MLS record on Palomino was just below $3 million, Via Las Vegas was a hugely profitable quick flip, and Via Gorrion landed a “wow” number as the highest MLS Valmonte sale ever, a huge feat given that it is essentially on busy Via Valmonte.
This all said, the demand was there to drive home prices much higher than in 2019, however, it was still missing that big sale.
Property Topping $1,000 to $1,200 PPSF
Then, we began seeing huge price per square foot numbers pushing above $1,200 a square.
- 3115 Via La Selva
- 3 beds, 2 baths, 1,523 sq. ft., 6,339 sq. ft. lot
- Sold Price: $1,850,000
And when those numbers happen, you begin to see some questionable heavy fixer sales go for far too high.
So, just when you thought the Valmonte market was at the verge of the top, a new record sale and perhaps one of the nicest homes in the submarket was listed after its custom build was completed almost 20 years ago…
New Record Sale Driver
Cue the double-lot Cape Cod on Via Colorin.
- 209 Via Colorin
- 4 beds, 5 baths, 4,804 sq. ft., 18,265 sq. ft. lot
- Sold Price: $5,005,000
Originally acquired as two side-by-side lots, the original owners built one of the most coveted properties in all of Valmonte, highlighted by a huge backyard, pool and sport court. Those types of amenities and space simply do not exist in the submarket with the exception of a very select handful of properties that rarely ever trade owners.
As a result of this sale, it has reset the market higher, allowing the $3 million homes to now potentially command $4 million or higher. Land value can and will go higher, along with pushing up values on mid-range homes as well.
Via Pima / PV Drive North Listings / Via Anita
The result is already being seen as a major driver for the market.
- 4037 Via Pima
- 3 beds, 2 baths, 1,914 sq. ft., 6,594 sq. ft. lot
- In Escrow Asking: $1,795,000
A feeding frenzy occurred on this cozy turnkey home located on the ultra-charming Via Pima. The final closing price when it goes public will make your jaw drop.
- 3904 Palos Verdes Drive North
- 4 beds, 3 baths, 2,565 sq. ft., 14,024 sq. ft. lot
- In Escrow Asking: $2,199,000
It was not long ago that P.V. Drive North took months to sell and at huge discounts.
Now, thanks to Via Colorin, this flat 14,000 square foot lot affords a buyer the option to blow the roof off the top of the price, spend $2 million to build 4,000 square feet and be all-in for under $4.5 million. Not a super comfortable number below Colorin’s value when you are on the Drive, but if you don’t need to resell, that is darn good for not being the most expensive home in the neighborhood. (For the record, I think someone will likely save the existing 2,500 square feet.)
- 2521 Via Anita
- 4 beds, 3 baths, 2,040 sq. ft., 7,080 sq. ft. lot
- Asking Price: $2,195,000
Lastly, this turnkey charmer in ”The Grove” within walking distance of the beach will likely be bid up well beyond asking and sold before the first open house this weekend.
Without the massive sale on Colorin, Valmonte might have seen a short-term top, but now, prices are going straight up.
It is amazing what one big sale can do for a neighborhood.
Conclusion/My New Listing
As a result of all the amazing action in Valmonte, look for huge gains in this particular housing market in the second half.
Land prices will climb, mid-range homes are surging again, and the next 3,500 – 4,500 square foot home on a prime street (regular sized lot, of course) might try their luck in the $4 millions.
To wrap up this week’s post, I have a new ocean view listing just down the road from Valmonte in coveted Malaga Cove. Views, views, and more views are had from this special property. Take a look…
- 1020 Palos Verdes Drive West
- 4 beds, 3 baths, 3,069 sq. ft., 13,620 sq. ft. lot
- Asking Price: $2,999,000
Dreamy ocean views and an elegant, modern lifestyle can be yours in this breathtaking Palos Verdes estate set above Bluff Cove in prestigious Malaga Cove. Expansive windows and patio doors surround this incredible home, opening each room to an abundance of natural light and offering a spectacular view of the Pacific Ocean. Discover a free-flowing layout where a display of earthy color tones creates a warm ambiance throughout the main living areas to relax and savor the view. The guest hideaway features two separate rooms with sliding glass doors to take in the fresh ocean air, a bathroom with shower, and a generous private balcony. Indulge in the abundant succulents and natural vegetation that surround your expansive backyard oasis with multiple patios to entertain along with a hot tub to relax your muscles whenever you need to rest. Comfortable, stylish, and secluded, this idyllic abode is an opportunity that is simply too good to miss.
For more South Bay real estate insights, subscribe and follow Richard’s social channels below:
Podcast / The Richard Haynes Real Estate Show
Youtube / Richard Haynes Real Estate
Instagram / richardhaynesrealestate
Facebook / Richard Haynes Real Estate