The ultra-luxury home market seems to be as strong as ever in the South Bay.
I normally do not write about this upper part of the market too often because, quite frankly, there is not too much action to speak about. But during these extraordinary times, you just cannot overlook the strength and the increasing sales.
In February, I wrote about ultra-luxury homes beginning 2021 on a strong note in my blog titled, “Ultra-Luxury South Bay Home Sales Start Year Strong in 2021.”
In April, I wrote about the growth in both sales and price on the Hermosa Beach Strand market in my post titled, “Hermosa Beach Strand Home Prices Making a Comeback.”
And, I have touched on “Behind the Gates” sales in Rolling Hills that have gone over asking and achieved record prices in my quarterly newsletter and podcasts.
The high-end part of the market is not slowing down…in fact, it might be accelerating.
“Ultra-Luxury” Updated Statistics
To refresh your memory of my past blog, I simply just made up that “ultra-luxury” was a sale above $9 million. Below, is the past sales history of homes that sold above this $9 million mark:
- 2019: 8 sales
- 2018: 9 sales
- 2017: 16 sales
- 2016: 4 sales
- 2015: 7 sales
The pandemic year of 2020 brought out many eager buyers into the South Bay market. In fact, 24 to be exact.
- 2020: 24 sales
The 2020 sales number is simply incredible and has blown away past years. Well fast forward to today, and not only is 2021 off to a strong start, it is on pace to break the astonishing 2020 sales record.
- Year-To-Date 2021: 15 sales
That would put us on pace for 30 “ultra-luxury” closings for 2021. What’s more, there are currently six properties in escrow above $9 million. Simply amazing.
So let’s check in on some pertinent information that illustrates the continued strength at the upper echelon of prices, and two submarkets that are fueling the fire…
The Manhattan Beach Strand and Behind the Gates in Rolling Hills.
Manhattan Beach Strand Sales
Manhattan Beach holds some of the most coveted beach property in all of Los Angeles County, especially south of the pier. That said, there have been some monumental sales farther north catching agents’ attention.
- 3208 The Strand, Manhattan Beach
- 6 beds, 4 baths, 3,748 sq. ft., 3,488 sq. ft. lot
- Sold Price: 10,510,000
- 3212 The Strand, Manhattan Beach
- 3 beds, 2 baths, 2,307 sq. ft., 3,516 sq. ft. lot
- Sold Price: $10,510,000
You do not see many eight figure sales as far north as the 3000-block. That said, you get not just one, but two here in the above sales. Furthermore, they are neighboring properties that were purchased by the same buyer.
That is roughly a $21 million investment in what is essentially a land play.
No home in the 3000-block or farther north has landed a higher price than $15.4 million.
Additionally, a similar double-lot on a corner sold for $17.750 million last year.
Take a look:
- 2722 The Strand, Manhattan Beach
- 8 beds, 9 baths, 6,025 sq. ft., 6,927 sq. ft. lot
- Sold Price: $17,750,000
Although these neighboring sales together are slightly bigger, $3 million is a sizable premium and shows how incredible the demand is for ultra-luxury homes, especially on the Strand.
This is just one example of bullish Strand sales for 2021, and it is purely land.
Rolling Hills Record Sales
In my earlier posts, I highlighted an incredible multiple-offer situation Behind the Gates in Rolling Hills.
- 22 Crest Road East, Rolling Hills
- 6 beds, 5 baths, 13,000 sq. ft., 216,596 sq. ft. lot, built in 2007
- Sold Price: $11,100,000
This one came to market at $9.995 million and went over asking to $11.1 million. That sale has been justified by two additional record sales Behind the Gates.
- 17 Crest Road East, Rolling Hills
- 5 beds, 9 baths, 8,900 sq. ft., 448,320 sq. ft. lot
- Sold Price: $16,680,000
Outside of the 1 Buggy Whip Drive home auctioned off at $22.4 million in 2018, 17 Crest Road East is officially the highest MLS sale in Rolling Hills, ever. And, it only took about six months to make a deal.
From a decade of essentially no growth from 2010 to 2019, the Rolling Hills home market has surged almost 30% in the past 12 months on a rolling average.
And, it looks as if records are being made with ease.
- 29 Crest Road East, Rolling Hills
- 5 beds, 5 baths, 6,752 sq. ft., 307,167 sq. ft. lot
- Sold Price: $15,500,000
Another justification for the price strength in Rolling Hills is this above sale.
I covered this property in the past as a record sale that looked to be a massive overpayment. In 2019, it sold for exactly $15.5 million…
Well, it just resold for the same price last week.
In a market that is up 30%, it certainly confirms the overpayment back in 2019, but on the flip side, if someone is willing to pay the same price today along with other record sales…its $15.5 million pricing is now finally warranted.
This is just a small taste of the 15 sales closing at $9 million or above, along with six properties in escrow, but they are great examples of the incredible demand for property at some of the highest prices.
The ultra-luxury market is as busy as it has ever been in the South Bay and the current sales demonstrate that prices are accelerating as more sales justify higher values.
This rising tide can help to lift all boats. And as long as luxury keeps roaring, so too, can the broader market.