If you follow me on Instagram, then you know this post is brought to you by reader’s choice! I usually get the most readers when I write about the beach cities, but much to my surprise, the majority of votes for upcoming blog topics were for Palos Verdes.
So, you asked, and here it is. Valmonte, one of my favorite neighborhoods, has had an interesting year! For today’s blog, I am going to give an overview of deals throughout this past year.
Biggest Sales of the Year
This year brought three of the five most expensive home sales in Valmonte, ever (#2, #4, and #5 if you are counting). Here’s the line-up:
- 3425 La Selva Place
- Sold for $3,225,000
- 4 bed, 4.5 bath, 3,814 sq. ft., 12,817 sq. ft. lot
- 3700 Via Palomino
- Sold for $2,995,000
- 4 bed, 4.5 bath, 3,962 sq. ft., 9,781 sq. ft. lot
- 4032 Via Largavista
- Sold for $2,850,000
- 4 bed, 4 bath, 3,423 sq. ft., 8,755 sq. ft. lot
It is no surprise seeing La Selva Place and Via Palomino on this list. Arguably, these are two of the most desirable streets in the area.
The Via Palomino sale was a gorgeous remodeled Cape Cod, while the La Selva Place sale was a rare and coveted address on an over-sized lot.
The Via Largavista sale seems like a bit of a stretch when compared to the other sales, due to the size of the home and the finishes. However, it can be tough to find larger, move-in ready homes in Valmonte these days…so, the big price makes sense.
As a result of these record sales, there are two homes currently asking ambitious prices. Let’s take a look…
- 3116 Via La Selva
- Asking $3,999,000
- 5 bed, 5.5 bath, 5,273 sq. ft., 12,495 sq. ft. lot
- 3649 Navajo Place (just taken off the market, will be listed again in the new year)
- Asking $4,125,000
- 4 bed, 4 bath, 3,871 sq. ft., 13,382 sq. ft. lot
Why so ambitious you ask? Well, these sales would not only be records in Valmonte, but records by about $650,000 and $775,000. That is a massive jump for buyers.
Flip vs. Fixer
We can almost always count on Valmonte for some great entry-level fixers. Flips, on the other hand, are not so easy to come by. But surprisingly this year, there were quite a few entry-level turnkey flip options. Let’s see how those compare…
The fixer house list:
- 3416 Via La Selva
- Sold for $1,434,000
- 3 bed, 2.5 bath, 1,971 sq. ft., 8,074 sq. ft. lot
- 4132 Via Picaposte
- Sold for $1,550,000
- 3 bed, 3 bath, 1,860 sq. ft., 7,978 sq. ft. lot
- 2500 Via La Selva
- Sold for $1,550,000
- 3 bed, 2 bath, 1,791 sq. ft., 7,033 sq. ft. lot
Of these fixers, I believe the Picaposte sale had the most value. Not only charming and in great condition, this home also offered an awesome backyard with detached quarters as an extra suite.
Buyers love Via La Selva, especially entry-level homes. Both sales on Via La Selva needed a lot of work. The 3416 Via La Selva sale probably needed at least $200k, while the 2500 Via La Selva sale had floor plan challenges.
The flipper house list:
- 4117 Via Picaposte
- Sold for $1,665,000
- 4 bed, 3 bath, 2,000 sq. ft., 7,932 sq. ft. lot
- 4032 Via Picaposte
- Sold for $1,685,000
- 4 bed, 2.5 bath, 2,000 sq. ft., 7,669 sq. ft. lot
- 4324 Via Azalea
- Sold for $1,758,000
- 3 bed, 2.5 bath, 2,054 sq. ft., 8,029 sq. ft. lot
There were not one, but two flips on Via Picaposte this year. They were both well executed one-level homes with four bedrooms and ended up taking price cuts to close the deal. Oftentimes, buyers pay a premium for a turnkey home but for these sales, I think the buyers may have won over the fixer purchases.
If you look at the flipped Picaposte homes in comparison to the La Selva fixers, I believe you end up spending more on the La Selva homes to make them look like the new offerings on Picaposte. Not to mention, you have to find a room to convert to a fourth bedroom. At the end of the day, why not skip the hard work and long process and go straight to a turnkey flip home at these prices? Not to mention construction prices keep going up and up. Take a look at the above homes and decide for yourself! I’d buy the flippers at those prices.
Signs on P.V. Drive North?
The sales pace on P.V. Drive North in Valmonte has been insane over the past two years. Take a look at the sales over the last few years below…
- 2018 Sales: 9
- 2017 Sales: 12
- 2016 Sales: 5
- 2015 Sales: 5
- 2014 Sales: 4
The increase in sales the past two years is pretty wild! Will it last? There are only so many homes on the drive, so I think the increase will be short-lived.
Currently, there are five homes on the market. Although they are not old listings, they are starting to age a bit on the market. Additionally, some lower prices and potential losses are starting to form for sellers.
After four months on the market, 2741 P.V. Drive North dropped its price $100k to $1,599,000. This home was purchased earlier this year for $1,550,000. The owner will almost assuredly take a loss at this level.
There are also two, two-bedroom homes asking $1,299,000 (2909 P.V. Drive North and 3648 P.V. Drive North). That is a pretty darn low price for Valmonte these days. However, comps suggest they need to sell lower, which could drag down the P.V. Drive market and potentially move prices lower.
Lastly, 3224 P.V. Drive North, at a new price of $1,449,000, has a heck of a lot to offer. The asking price dropped $50k in less than two weeks on market. If this one needs a quick sale, and goes in the $1,300,000 range, it would no doubt be a leg down for the market.
Best Buy of the Year
The best buy of the year, in my humble opinion, goes to…
- 513 Via Gorrion
- Sold for $1,465,000
- 3 bed, 2 bath, 2,516 sq. ft., 15,265 sq. ft. lot
The buyers snagged a turnkey entry-level home for only $582 per sq. ft. compared to the 2018 Valmonte median price per sq. ft. sale of $776. They were able to take advantage of a few failed escrows and good timing. See the comps below…
- 4213 Via Valmonte
- Sold for $1,450,000
- 3 bed, 2.5 bath, 2,199 sq. ft., 8,337 sq. ft. lot
- 4405 Via Valmonte
- Sold for $1,625,000
- 3 bed, 2 bath, 2,456 sq. ft., 9,622 sq. ft. lot
Compared to these two Via Valmonte sales, Via Gorrion is a larger, one-level structure in better condition. The fact that the address is Gorrion, rather than the busy cut-through of Via Valmonte is a good mental detail for a future sale.
Solid buy!
Conclusion
The Valmonte market had an interesting past year. I was surprised by the activity, but also by the non-activity, like zero sales by the P.V. Stables on Via Opata, Via Pima, and Via Campesina. Also, there were no sales on Paseo Del Campo with their pretty views of Palos Verdes Golf Club.
No question, there are smart purchasers here looking for value. That is proven by the median home price in this area only growing by 2.9% year-over-year on 20% less sales, which is surprising to most as Valmonte is such a coveted area.
All in all, Valmonte is still in high demand by buyers, but it certainly is not a sellers’ market. It will be fun to see what 2019 holds.
Thanks for voting and hope you enjoyed the write-up!
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]