The 2022 South Bay market is off to a fast start.
If you read last week’s blog on the year-over-year 4th quarter numbers, then you’ll know the market is strong. That said, if you are not IN the market, currently listing and searching for homes, then it is difficult to understand the true craze being felt by everyone in the marketplace.
Homes are on and off the market in record time, home buyers are continuing to offer record prices only to miss out, and sellers know they are sitting pretty with too little inventory to satisfy too much demand.
Without experiencing it as an agent or a home buyer/seller in the moment, it is tough to put into context.
I will try to give context by sharing current deals/closings that are set to drive the market even higher. Below, I will cover pending or recently closed 2022 sales that will only push prices up even further.
Higher prices seem to be feeding higher prices. It is really unlike anything our market has seen before.
Let’s jump into some deals that will drive the market to continued records.
Designer-Perfect North Redondo
By far one of the best executed newer townhome builds in all of North Redondo, not to mention expert designer-level interior décor, this new pending sale is making quite a splash.
- 2604 Huntington Lane #A, Redondo Beach
- 5 beds, 4 baths, 2,594 sq. ft., 7,357 sq. ft. lot
- Asking Price: $1,795,000
This home went into escrow in just three days thanks to the amazing finishes and perfect presentation. When watching from afar, it is not shocking that it did, but when you understand the comparables, it is quite mind-blowing.
In October 2020, the rear unit came to the market asking $1.499 million.
See below:
- 2604 Huntington Lane #B, Redondo Beach
- 5 beds, 4 baths, 2,538 sq. ft., 7,257 sq. ft. lot
- Sold Price: $1,611,000
It induced a furious bidding war and ultimately closed $112,000 over asking, which at the time was an incredible number for a newer townhome sale.
So today, not only did this new front unit listing sell in a split second, it came to market asking $184,000 over a direct comparable just a year and three months later, and likely went even higher. Amazing.
That would be 12% jump in price in only fifteen months, from a market already slammed with crazy growth.
Incredible Views in Silver Spur
In the Silver Spur neighborhood, one used to be able to find view homes for a discount. Little known streets like Bayridge, Graylog, Barkstone, Grayslake, and Lightfoot to name a few.
Before the pandemic, you would be hard pressed to find a sale above $3.5 million, and even that would be a “wow” sale.
Today, there are now pending sales that may eclipse $4.6 million and $6.25 million.
- 5903 Clint Place, Rancho Palos Verdes
- 4 beds, 6 baths, 5,159 sq. ft., 23,271 sq. ft. lot
- Asking Price: $4,695,000
This property sold 18 months ago for $4.2 million and made a deal on its relist in just six days. If the asking price holds, then it looks to be a 10% premium.
Its neighbor looks to be doing even better thanks to its bigger views.
- 5905 Clint Place, Rancho Palos Verdes
- 4 beds, 5 baths, 4,131 sq. ft., 14,775 sq. ft. lot
- Asking Price: $6,250,000
This home would be blowing away the submarket’s highest sale ever by close to 30%. To achieve a record price of that magnitude in a market known for sales well below $2 million (yes, we know this home is special) is still quite incredible and only something that can be accomplished in a blistering hot market.
South Hermosa Record Stunner
Lastly, Hermosa Beach saw a closing that will be a boon for property south of the pier.
Off The Strand, sales above $4 million are few and far between in Hermosa’s South Sand Section. Even rarer, a sale over $5 million.
- 322 Manhattan Avenue, Hermosa Beach
- 4 beds, 6 baths, 4,477 sq. ft., 2,841 sq. ft. lot
- Sold Price: $5,400,000
This home made a splash back in 2017 selling for $4.8 million. Since then, nothing has come remotely close to this sale with just one home selling for a little over $4 million off The Strand.
I wrote about this listing in a past blog and deemed it to be a vast potential overpayment. Considering it only sold 15% higher four years later and in a blistering market probably validates that opinion, however, the latest sale does not lessen the impact for the marketplace.
The fact that there are no sales above $4.1 million since its 2017 sale (off The Strand) south of pier, it is still quite a feat to land a $5.4 million number and a standalone record for the location by a mile.
Record prices help to justify prices going higher in all property-types and this will likely raise values for all properties in this little pocket of Hermosa Beach.
Conclusion/My New Listing
This is just a small sample of pending and closed sales to kick off 2022.
Not only did high prices at the end of 2021 set up the market to grow strongly in 2022, but it looks like in many cases, new deals and closings are already leaving last year’s recent sales in the dust.
Until record low inventory is solved, the market trend will continue to go higher.
It is as strong of a real estate market as many have ever seen – and the above sales give you a glimpse into the craziness. As a result, If you can believe it, the South Bay home market may get even stronger.
And finally, to wrap up this week’s post, I want to highlight my new incredible Rancho Palos Verdes Del Cerro listing that just hit the market for the first time in half a century. Views, views, and even more views. Take a look for yourself…
- 23 Coveview Drive, Rancho Palos Verdes
- 4 beds, 4 baths, 3,274 sq. ft., 18,668 sq. ft. lot
- Asking Price: $2,699,000
Imagine coming home after a long day to relax in your private pool and enjoy breathtaking views sitting above prestigious Rolling Hills. Explore this stunning one-story Del Cerro residence, ideally set on nearly half an acre in a peaceful cul-de-sac with panoramic vistas of the Queen’s Necklace, snow-capped mountains, and the cityscape. A vibrant double-door entry flanked by curved walls of glass welcomes you into the sweeping layout that’s bathed in an abundance of natural light. Two stone-clad fireplaces await you in the main gathering areas, including one in the living room that anchors the vaulted wood-beamed ceilings overhead. Superbly crafted for the avid entertainer, the covered patio features glass sliders and skylights that retract to seamlessly blend indoor and outdoor living. A home that was truly ahead of its time, is now a blank slate waiting to be brought back to life with a fabulous floorplan. The main living area at the heart of the home is set up for perfectly for indoor outdoor living overlooking a shimmering pool with towering palm trees and colorful sunset streaks surround you. The colossal views, substantial lot, and wonderfully large one-level floor plan may be the highlights, but the property also boasts a tremendous grassy backyard, fruit trees, and an attached 3-car garage. Opportunities of this magnitude in the Del Cerro neighborhood are extremely rare with this home on the market for the first time in over 50 years. One has to simply experience the home and views in person to truly understand this very special property. You will not be disappointed.