The real estate pundits have been wildly incorrect to begin 2024. Here were the two mainstream prognostications for this year:
- Interest rate declines that would fuel buyer demand.
- A rise in home inventory that would increase sales.
What we know today is that interest rates are higher than when they were on January 1st, and The Federal Reserve looks less and less likely to cut interest rates at the pace many predicted.
I hope my readers took note of my South Bay Fearless Predictions to kick off the year. Contrary to many local Realtors and real estate experts, I forecasted that home inventory would remain painfully low. Additionally, I believed that mortgage rates would fall, but remain elevated. Those calls are looking good, although the year is young.
South Bay new listing inventory seems to be very slow, based on my view of listing dynamics on the MLS this month. I have no data to back up my “feelings” at the moment, but I will have the data next week and cannot wait to dive into the numbers with you.
For this week, I want to share some notable February sales throughout the South Bay. There are plenty more notable sales but there is only so much I can write about each week. Let’s dive in.
Redondo Beach TRW Tract
There was a significant sale in North Redondo’s TRW that could have lasting impacts on that sub-marketplace.
2401 Spurgeon Avenue
4-beds, 3-baths, 2,110 sq. ft.
SOLD: $2,485,000
This is quite the sale for a 2,100 sq. ft. home at $1,177 price per square foot (PPSF). And while this was on a lot about one and half the size of a normal lot, it is still a huge price.
There are plenty of TRW tract home sales that are around 1,000 sq. ft. that trade from $1.2 to $1.4 million. This sale gives buyers / current owners of smaller TRW homes a comp that allows them to spend $750,000 (more or less) on a major remodel & addition.
If you are a believer that buyers are willing to pay above $2 million for 2,100 sq. ft. turnkey homes in the TRW tract, then this neighborhood could be a coiled spring for growth.
New Rolling Hills Country Club Sale
The first RHCC home sale of 2024 has officially closed, and it is worth a study.
31 Thorsen Ranch Road
4-beds, 5-baths, 3,855 sq. ft.
SOLD: $5,100,000
There is zero inventory the newly developed section of the Rolling Hills Country Club. And while this sale is the second lowest sale in the past year, the PPSF was able to hold above $1,300 per foot.
Sure, to close last year, there were some monster sales in the $6 million range, but those were significantly larger homes with bigger views…and they closed in that $1,300 a foot range or slightly lower.
So, while the price number was lower than what the RHCC market is accustomed to, it is a solid sale for the neighborhood. And if you want a home in that community, well, you will now have to wait as there is not one home available for sale.
Affordable Manhattan Beach
It is most fun to discuss the luxury market in Manhattan Beach.
And because of this expensive home market, there are many who believe homeownership in Manhattan Beach is out of reach. That might be true but there are more affordable options in the city, well below its median price of almost $3 million.
1117 Pacific Avenue, #7
2-beds, 2-baths, 881 sq. ft.
SOLD: $1,025,000
This location is within shouting distance of wonderful downtown Manhattan Beach. You are far west of Sepulveda, and it is a darn cute unit.
Sure, it is small. Sure, it is located on a busy cross-section of the city. Sure, it is an older condo building. But come on, you are at $1 million to live in one of the most coveted beach cities in the world.
Hard to lose at this price.
Hermosa Strand Condo Finally Sells
For the Zillow and Redfin warriors that track property as a hobby, then this is a Hermosa Strand condo complex you have watched for a long time.
72 The Strand, #6
3-beds, 2.5-baths, 1,460 sq. ft.
SOLD: $3,490,000
It is most well-known for its 2-bedroom in unit #5 that took the better part of four years to sell back in 2021.
Since then, the past sales have moved more efficiently with one sale going in two days and this one closing in under four months.
What’s more, the owner made a nice profit as it was purchased back in 2017 for $2.15 million, and seven years later it goes for over $1.2 million more…not too bad while enjoying a strand location…but it was earned with a nice rehab.
Wrap-Up
To wrap up my notes on these notable sales:
- The TRW Tract might be due for upside.
- RHCC is holding steady and has zero inventory.
- There are “affordable” home options in MB.
- Hermosa Strand condo sales are always fun.
If you enjoyed this post, then I am confident you will like next week’s post even more. Inventory and interest rates are going to be a key theme in 2024, and I will have the latest data for you to absorb next week.
Can’t wait and see you then.
Richard Haynes
DRE: 01779425
For more South Bay real estate insights, subscribe and follow Richard’s social channels below:
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]