The Lunada Bay home market has been busy the last couple of months.
We have seen some great buyer-side deals on fixers earlier in the year amid uncertainty, and at the same time, some sellers landing record prices for rare new construction or premier locations.
Lower Lunada Bay (west of P.V. Drive West) has seen a wide range of activity from closings, pendings, and a handful of new listings this week.
Re-Sale from 2021 at a Big Mark-up
We begin with a gorgeous corner lot in the Margate pocket of lower Lunada Bay with a new listing that was on the market just about two years ago.
- 3,573 sq. ft., 5-beds/4-baths, 13,451 sq. ft. lot
- Pending: $4,250,000
This charming home was sold in July of 2021 for $3.69 million and received upgrades throughout the home by its new owner. Major backyard improvements, bathroom remodels, and an upgraded kitchen gave the seller confidence to ask $560k more than they paid previously.
After selling costs, rehab investments, and holding costs like property taxes/interest expenses, it is unlikely to be a profitable endeavor for the seller, however, an efficient sale going to escrow in just four days is an excellent result and continues to push lower Lunada Bay prices higher as a result.
Great Buy-Side Closing
During Q4 and early Q1, there was loads of uncertainty in the equity markets and real estate markets thanks to rising interest rates, etc.
This made for a tricky market to sell in and opportunistic buyers, looking back, made great deals during this time.
- 3,086 sq. ft., 5-beds/4-baths, 9,682 sq. ft. lot
- Sold: $2,700,000 (March 2023)
This bullseye Margate location re-listed on the market at $2.999 million in October 2022 (after cutting price and canceling earlier) and waited about three months to make a deal before taking a large 10% discount to $2.7 million.
Ultimately, the buyer grabbed a fabulous location at $875 per sq. ft. with a great backyard and tons of potential.
New pending and closing homes below will show how good this buy will look soon.
New Home Going Half a Million Higher
A recent closing as of a few days ago is a massively positive result for lower Lunda Bay homeowners as a 15-year-old home closed for well over asking at huge PPSF number.
- 3,619 sq. ft., 5-beds/4-baths, 8,950 sq. ft. lot
- Sold: $4,800,000 (May 2023)
This listing came out asking $4.3 million and made a deal in just three days. The final closing price was a half a million over asking to an all-cash buyer.
While there are comparable sales on Cloyden and PV Drive West to support this sales price, those sales are typically in the $1,100 per sq. ft. range.
This undersized home really packed a punch at $1,326 per sq. ft. – quite an amazing result for the marketplace.
Two One-Levels in Escrow
The excellent sales results have continued throughout the lower Lunada Bay marketplace with two pending escrows that demonstrate the strength of the submarket.
- 2,601 sq. ft. 5-beds, 3-bath, 10,445 sq. ft. lot
- Pending: $2,949,000
This custom updated one-level home with pool is in an incredible location. While the square foot/bedroom count listed on the MLS might be a bit ambitious – it was in high demand.
Multiple offers hundreds of thousands over asking is the pending result here which will only continue to drive lower Lunada Bay higher.
- 3,072 sq. ft., 4-beds,3-baths, 18,217 sq. ft. lot
- Pending: $3,999,000
Furthermore, this extraordinarily rare over-sized lot was another quick escrow during the Easter holiday weekend.
While truly, this lot deserves to be redeveloped with a brand-new two-story ocean view home, the current 3,000 sq. ft. one-level is a great covered land play to be patient with for redevelopment. This listing was close to land value ($3M to $3.5M) with a slight premium for the existing home that needs works.
Long term, this is a premier property on a huge lot is rarely seen in lower Lunada Bay…the big asking price, despite the work needed, was snatched up in a flash furthering the fabulous price growth in Lunada Bay in Q2.
Compelling New Listings
And finally, with all the action in lower Lunada Bay, buyers should still thank their lucky stars as inventory continues to come to hopefully feed the demand.
There are a few new listings out this week, but I want to highlight two of my favorites.
- 2,469 sq. ft., 4-beds/2-baths, 10,072 sq. ft. lot
- Asking: $2,499,000
This one-level with vaulted ceilings and a flat lot is quite compelling. At the current price, it should be highly sought after just being in Lunada Bay, but what’s more, the ocean views and great bones make this one a fabulous opportunity.
- 2,281 sq. ft., 3-beds/3-baths, 9,428 sq. ft. lot
- Asking: $3,500,000
The second new listing up is this completely remodeled 3-bedroom on Chelsea Road.
If you are a buyer not looking to lift a finger, this one has it all for you – location, brand new finishings/systems, and an on-trend look. If money is no object, then you can skip a $2.5M purchase + $1M remodel and go straight to this new listing.
That said, this is one of those “heat checks” for the market…
Is there a buyer willing to pay $3.5M for just 3-beds and over $1,500 per sq. ft. It might be a tough ask, but if it happens, then lower Lunada Bay market might become one of the hottest markets in the South Bay.