In December of 2015, I wrote a blog about the affordability of Hermosa Beach condos. More specifically, I wrote about the large condo buildings on Ardmore and Pacific Coast Highway being the best bang for your buck.
Just six months later, I wrote a follow-up blog about the surge of those condo prices going from $575,000 in December 2015 to $650,000 in June of 2016. A 13% rise in a very short period!
Now, here we are in June of 2017 (12 months later) and I think it is time to revisit this topic to see if prices have continued to surge or leveled off.
June 2016 to December 2016
This period was an interesting time for Hermosa Valley condos. Sale prices were surging up to $650,000 for 2-bed/2-bath condos, but as many know, the summer and winter season tends to slow a bit. There seemed to be some push back as there was only one strong sale of $649,000 at 1720 Ardmore #219.
There was a great turnkey buy made at 1600 Ardmore #227 at $594,000 when comps proved it was worth $650,000. And then there was a condo at 1707 Pacific Coast Hwy #324 that needed some love, but the $530,000 price more than made up for the work needed in the kitchen and bathrooms.
During this period, these Hermosa Valley condos looked to be taking a breath on price and I believe seasonality certainly had an effect on sales.
January 2017 to Present
Looking at the action from January to today, these condos are fighting their way back to consistent sales of $650,000. Buyers are being picky, however, as they will only pay top dollar for units with a second bathroom and turnkey features.
For instance, a smaller 2-bed/1-bath offering at 1600 Ardmore #216 came out at $615,000 and had to cut its price to $599,000 before going into escrow. Same for 1600 Ardmore #319 that sold in only five days at $620,000, but the buyers were smart enough not to overpay on a smaller unit with only one bathroom.
The slightly larger floor plans are currently holding an average around $650,000. 1707 Pacific Coast Hwy #221 sold for $632,000 and 1720 Ardmore #324 sold for $685,000 which are really the highest comparable comps in the past year. There has been little action above $650,000 since reaching that price last year.. It looks as though these condo complexes have found their price and will hang around the $650,000 number until further notice.
Potential Driver of Value Just Sold
I would say the only potential game changer is 1600 Ardmore #226 that came out asking a whopping $700,000 and closed this month for $695,000 after holding firm for five months on market. This condo has a beautiful over-the-top remodel and grabbed a $45,000 premium to most sales. You should really click the pictures.
It would be rare to continue to see sales like this because higher end construction products are not usually found in these buildings. But if you purchased a unit before 2015 or owned a unit in need of updates, then perhaps look to 1600 Ardmore #226 pictures for inspiration. If you are already spending money on a remodel of your unit, then you should consider spending additional funds to match this recent sale. You can assume another $40,000 to $50,000 in resale value, so if you can spend say $25,000 more to match this product, then it would be a nice return on your investment.
Next week we will revisit the year old blog on “value areas” by the beach that had potential for appreciation. How are they doing? Do I hold a crystal ball? And what are my picks for this year…stay tuned!