The Valley Section of Hermosa Beach has a wide range of housing options. This area is home to some of the most affordable one- and two-bedroom condos in the city as well as some of the most expensive estate properties in the city.
This sub-section is quite small. From Pier Avenue to the north and Herondo to the south, the east/west boundaries are tiny with Valley to the west and PCH to the east. It is only about 11 blocks.
The Sophie’s Choice of Town Homes
Most town homes in this smaller sub-section of Hermosa range from 2,000 to 3,000 square feet. The one defining factor between a large gap in price is whether it is new construction or not. New construction gets big premium here, while existing construction takes a discount.
Buyers must decide what is most important to them: Brand-new, no-hassle housing or more money in the bank.
Let’s compare the differences…
New Construction Sales
For new construction, you rarely, if ever, see new town homes under 2,400 square feet because developers need to go bigger to earn a higher sales price to drive profit. Here are some of the 2,500-ish square foot new construction sales…
- 708 2nd Street
- 4 bed, 3.5 bath, 2,541 square feet
- Sold: $2.059 million
- 615 7th Street
- 4 bed, 3.5 bath, 2,408 square feet
- Sold: $2.4 million
- 617 7th Street
- 4 bed, 3.5 bath, 2,500 square feet
- Sold: $2.41 million
Now, here are some of the larger town home sales…
- 712 Ardmore Avenue
- 4 bed, 3.5 bath, 2,700 square feet
- Sold: $2.2035 million
- 637 7th Street
- 4 bed, 4 bath, 2,984 square feet
- Sold: $2.675 million
- 635 7th Street
- 4 bed, 4 bath, 2,950 square feet
- Sold: $2.753 million
Existing Construction Sales
The existing, older construction sales have a lot more comps with smaller units ranging from about 2,000 to 2,500 square feet. A few larger units sell as well, but the sample size is a tad smaller. Here are the smaller ones first…
- 647 2nd Street
- 3 bed, 2.5 bath, 2,075 square feet, built in 1998
- Sold: $1.43 million
- 621 9th Street
- 3 bed, 2.5 bath, 2,279 square feet, built in 1989
- Sold: $1.516 million
- 603 3rd Street
- 5 bed, 4 bath, 2,440 square feet, built in 2004
- Sold: $1.55 million
There are smaller units that have sold for even less, but this is a great barometer for the lighter side of existing town home sales in our sub-market focus today. Now onto the larger sales…
- 1050 Ardmore Avenue
- 4 bed, 4 bath, 2,600 square feet, built in 1989
- Sold: $1.55 million
- 651 9th Street
- 4 bed, 4 bath, 2,395 square feet (huge lot), built in 1998
- Sold: $1.7 million
- 632 9th Street
- 4 bed, 3.5 bath, 2,934 square feet, built in 2003
- Sold: $1.73 million
New Homes versus Old Homes
Now that I have made your eyes bleed form a ton of sales, let me try to put a bow on this one to show the stark difference between the options.
For smaller options…
That is an $850,000 difference for a 2018 build versus a 2004-built home offering essentially the same square footage and location.
Or what about poorly located town homes on the busy Ardmore Avenue…
Basically, these are two perfectly comparable homes with the same number of bedrooms, about the same square footage, and on the same busy street. The only difference here is a new home versus an old home. That one difference will cost you over $650,000.
Lastly, two more town homes to compare.
Again, the only difference here is a new home versus an old home. That premium will cost you about $1 million.
Which One is Right for You?
Honestly, there is no right or wrong answer. Do what is best for you.
The long-time readers know my investor blood will always push for buyers to go with the more affordable option because I believe in 20 years, all those options will be considered “old.” That extra $500k or even $1 million can be put towards growing other assets or income properties with cash flow.
At the end of the day, you need to know one thing when buying in this section of The Valley: The spread between new and existing homes. From there, you will know what type of buyer you are based on your specific situation.
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]