The smallest city I cover in my weekly real estate blog is the wonderful city of Hermosa Beach.
Also known by its motto, “The Best Little Beach City,” I can attest to Hermosa being a fabulous beachside community as a former longtime resident from my early-20s to mid-30s.
Rarely do I focus a single blog post on Hermosa Beach due to fewer sales and a truly unique topography that makes apples-to-apples comparisons incredibly difficult for a short post.
But for this week, I want to focus on this great little town.
Rather than come to a conclusion analyzing multiple comparable sales in a sub-pocket, I am going to highlight a handful of key sales for the month of September to give you a nice idea of market happenings in this beach city.
This will hopefully give you a breadth of what is going on, as well as an idea of the many various options one can consider in this city.
BIG Sale in the Hermosa Valley
First, let’s start with the second highest Hermosa Beach MLS sale (excluding The Strand) this year. It officially closed in the middle of September in a special pocket of the Hermosa Valley with extra-large lots.
- 2127 Power Street
o 5 beds, 5.5 baths, 5,230 sq. ft., 21,305 sq. ft. lot
o Sold: $12,400,000
Power Street properties are known for their expansive lots and added privacy away from the Sand Section. This turnkey home is no exception to the Power Street reputation as it delivers on size, amenities, and privacy.
What’s more, this is a bullish sale for the Hermosa Beach home market.
Despite high interest rates, low affordability, and record-high prices, the luxury buyer pool was able to produce a successful sale here.
Not only is this a strong sale, it is the 4th highest MLS sale in Hermosa Beach, ever – excluding The Strand, of course.
Two Affordable Condo Sales on PCH
Now, I want to shift gears to some of the most affordable real estate options in Hermosa Beach – the 1707 Pacific Coast Highway condo complex.
For this post, I would like to focus on two sales, one being a one bedroom unit and another being a two bedroom unit.
- 1707 Pacific Coast Hwy, #502
o 1 bed, 1 bath, 797 sq. ft.
o Sold: $630,000
- 1707 Pacific Coast Hwy, #223
o 2 beds, 2 baths, 1,004 sq. ft.
o Sold: $790,000
What I love about Hermosa Beach real estate is the breadth of options when it comes to price. I go from writing about a $12 million dollar sale to condo units well under $1 million that are in the same sub-market. It is so awesome!
For this highly coveted beach city, these condo sales showcase more affordable homes for buyers.
From an investment perspective, one would probably want to purchase the two-bedroom option for just $160,000 more to acquire a second bedroom. That ROI just feels right.
But, from a purely owner-occupied perspective, a solo-buyer may prefer the one-bed unit for the benefits of it being a corner unit penthouse.
I will let you decide for yourself. There is obviously no wrong answer and a matter of personal preference.
Land Sale in East Hermosa
Next up is a land sale in Eastern Hermosa Beach that will be interesting to follow.
- 1532 Silver Street
o 3 beds, 1.5 baths, 1,207 sq. ft., 3,992 sq. ft. lot
o Sold: $1,515,000
Purely coincidental, in a past life I ran a spec development on Silver Street on the opposite side of the street with ocean views. Luckily our timing was right, and a buyer found us pre-construction that resulted in a nice profit to our investors.
Nonetheless, it looks like another developer might be taking a swing again on Silver Street.
Can the developer pull off a new construction home between $1.5 and $2 million depending on the size? And, will they be able to land a sale of $4 million or more?
We will know in just a few short years.
What we do know is that 4,000 square foot lots in East Hermosa command around $1.5 million without views of the ocean.
Hermosa Sand Sale at a Premium
And lastly, we move to an “almost new” build in the coveted Hermosa Sand Section.
- 217 28th Street
o 5 beds, 5 baths, 3,705 sq. ft., 2,407 sq. ft. lot
o Sold: $5,900,000
This beautifully built home, completed in 2017, has custom quality finishes and a rooftop deck with fabulous views. It is a stone’s throw from the beach and located in the highly desirable northern flank of the city.
This home traded at nearly $1,600 a square foot, which is comparable to the median price per square foot sales in the premium Sand Section market of Manhattan Beach.
This was another great sale for the local marketplace after a short listing period.
Let’s wrap-up the September highlights for the Hermosa Beach home market.
• A massive beach estate sale resulting in one of the highest sold prices off The Strand, ever.
• Two affordable condo options as a great place to live, or even invest.
• Land sale that will tell us a lot about the spec market in the future.
• And, a premium quality build that landed a Manhattan Beach valuation in a quick timeframe.
Hermosa Beach is an excellent place to consider placing your real estate dollars. And, as you can see, there is a little something for everyone as a buyer.
While Hermosa Beach median prices are essentially flat on the quarter, these September sales certainly were some of the bullish closings helping to support the market against the headwinds of high interest rates and low affordability.
See you next week!