In this week’s edition of the blog, I am going to write as a stream of consciousness.
I will be sharing recent sales from the past few months as if I was going through these in my office reviewing the latest South Bay market action for my clients (as I do every day). This post will be focused on high-end sales in Palos Verdes Estates, Hermosa Beach, and Manhattan Beach.
If you enjoy the style and content of this post, let me know – [email protected] or comment on Instagram/Facebook.
Recent Sales
- 3 beds, 3 baths, 3,300 sq. ft.
- Sold: $3,948,000
This is a well-made Montemalaga home. While only 3-bedrooms, this home offers an oversized lot, ample amount of space in the home, and ocean views. It is not brand new but it has been remodeled in the last 20 years.
With Palos Verdes Estates real estate selling for a median range of $900/PPSF (price per square foot) to $1,100/PPSF, it makes sense to see this one go for $1,200/PPSF due to its condition and extra bonuses like the views, pool, and lot size in a prestigious pocket.
The one reservation I have is confirming the home size. Per the seller it is 3,300 sq. ft. but according to the tax records it is 2,552 sq. ft. – an easy check at the Palos Verdes Estates homeowner’s association.
- 6 beds, 7 baths, 10,000 sq. ft.
- Sold: $10,850,000
If you are on the right part of the street, Via Rincon is one of the best view streets in all of Palos Verdes with huge views of the Queen’s Necklace.
What’s more, you do not see too many sales above $10 million in PVE and homes as large as this one at 10,000 sq. ft. with over an acre of lot space.
Taking a broader view on the ultra-luxury market throughout the South Bay, one has to figure out what ultra luxury homes are landing these days (in updated condition) – there are examples of $1,200/PPSF, $1,300/PPSF and even pushing $1,400/PPSF.
That said, Palos Verdes Estates has trouble with large estates beating $1,200/PPSF whereas beach cities homes have a better chance of a $1,400/PPSF.
All in all, this a rare lot, rarer view, and few homes of this magnitude come to the market.
If you are a home buyer where money is no object, $1,085/PPSF is not a steal, however, it is a fair price to pay if you have been waiting for a rare offering like this one (it was reduced from $15.5 million a year ago).
Let’s say, for example, you invest $200, $300, or $400/PPSF to make this home feel new – you can reasonably estimate value in the $1,200/PPSF range in Palos Verdes Estates but it will be a tough sale to obtain.
Ultimately, if this is a long-term investment or dream home, then all-in at $1,300/PPSF – $1,400/PPSF will bring happiness even if it cannot be sold at that price today.
This property over time will be enjoyed immensely and is not an unfair price. For the right buyer, the work + price is worth it, even if it would be sold at a slight loss in a couple of years.
Own this one forever.
- 5 beds, 6 baths, 5,273 sq. ft.
- Sold: $4,900,000
The Grove in Valmonte is one of the most popular destinations in Palos Verdes Estates.
This home sold for $3.72 million in June 2019 during the throws of the Coronavirus pandemic and was a “wow” sale for Valmonte at the time.
An over-sized lot, Spanish design vibes, detached casita – gorgeous eucalyptus-lined section of La Selva. That said, it desperately needed a reimagined kitchen space back in 2019.
That’s exactly what the new owners did in the new listing and it sold for over asking at $4.9 million.
In all, the buyers paid a $1.2 million premium (32% mark-up) in nearly four years’ time.
With appreciation going bananas in Palos Verdes in 2020 and 2021, along with the owners taking on the massive kitchen remodel, I would say another fair deal.
Not to mention Valmonte offering some of the nicest real estate in the South Bay for just under $930/PPSF. You get these discounts because of the lack of large comps in Valmonte and no ocean views,
If views are not the top of your list, then Valmonte offers some of the best bang for your buck “close to the beach” homes (this location just a seven-minute bike ride to Torrance Beach) in the South Bay when it comes to large homes and estates.
- 5 beds, 8 baths, 4,585 sq. ft.
- Sold: $5,500,00
This beautiful 2018 Hermosa Valley build sold efficiently under two weeks at full asking.
The price seems right on the money at just under $1,200/PPSF.
This home last sold in January of 2020 for $4.725 million. Today, three years and three months later, the premium was $775,000 (or 14%) – a little disappointing of a result for holding that long in a surging market.
Factoring in selling costs and property taxes, the owner likely incurred expenses close to $500,000 from just those two-line items.
Property maintenance and other items could make this home sale a break-even, but oftentimes you pay a premium for new construction and the ease of having very few issues over three years is likely worth the price of admission for this homeowner.
Read my past blog on this special Hermosa Valley section here.
Fair deal for both the seller and buyer in my mind – the market is truly efficient.
What do you think?
760 33rd Street, Manhattan Beach
- 4 beds, 4 baths, 2,884 sq. ft.
- Sold: $4,000,000
The Tree Section has gotten EXPENSIVE. It is a battle for buyers and prices seem to get squeezed higher each quarter.
This one is interesting because the typical new construction in the MB Trees is landing around $1,200/PPSF – $1,300/PPSF. So, when you push $1,400/PPSF then the property, build, and location need to be special.
The 760 33rd location is a solid one west of Laurel, and it is definitely a highly desirable larger lot of 5,028 sq. ft., BUT this is not your typical Tree section home with a maxed out footprint.
Instead, someone went smaller – in fact, much smaller than 4,000, 5,000+ sq. ft. we normally see – but over-the-top on high end finishes, hoping to appeal to someone who doesn’t need square feet but appreciates design, location and lot size.
It worked and sold off-market for $1,386 sq. ft. which is an excellent result for the home seller without having to build brand new, ground-up construction.
Fun fact: This property sold for $2.85 million less than a year ago. The flipper (or short term custom homeowner) took a risk and rehabbed the 2,800 sq. ft. – and it looks to have paid off.
340 6th Street, Manhattan Beach
- 5 beds, 5 baths, 3,842 sq. ft.
- Sold: $6,550,000
Last but not least, the coveted flat walkstreets of Manhattan Beach.
I wanted to share a pocket of real estate where you start to see sales beyond the $1,200/PPSF threshold that is typical, and where you can blow away even expensive $1,400/PPSF sales in the Tree Section.
Built new in 2013, it is hard to find move-in ready homes in this neighborhood. They are few and far between – and when they come – it is an expensive endeavor, but the comps are there to support it.
All in all, the original asking price of $7.5 million was extremely steep when compared to newer homes that were larger. Those homes commanded into the $7 millions.
This one was surprising to see make a deal in under two months, however, upon closing the price was much more in line taking a $900,000 discount right off the top.
It is still expensive but that is life on the flat walkstreets.
And a larger designer home, with south-facing sun, is now listed as a “coming soon” for $7.999 million, this 6th Street could be a fair transaction for both parties if the $7.999 sale is successful in obtaining its asking price.
Final Thoughts
There is my first attempt at writing my stream of consciousness. My hope is to educate you on a broad range of properties to help with your perspective.
And, I hope it helps you make better buying and selling decisions in our local South Bay home market.
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]