Historically low inventory has created more areas of strength than weakness throughout our local South Bay home markets. And if you know where to look, you can find value pockets.
On this week’s blog I am going to cover a strong housing pocket formerly a value area that is now seeing its prices surge: North Redondo’s TRW tract. And the pocket offering amazing value relative to its location: Unincorporated Palos Verdes Peninsula’s Westvale neighborhood.
Strong Price Action in the TRW Tract
For those of you not familiar with North Redondo’s TRW tract, it is a small pocket in the very northeast section of the city. While many people are familiar with the two-on-a-lot and three-on-a-lot townhome complexes of North Redondo, the TRW tract is zoned R-1 and is made up solely of single-family homes.
The tract’s boundaries are Vail Avenue to the west, Robinson Street to the south, and MB Blvd and Inglewood Ave to the north and east, respectively.
This pocket of North Redondo has always been highly desired for its affordable single-family neighborhood with easy access to the 405 for commuters.
In the past, we would see high-priced sales for the marketplace, but it was always at a relative value compared to most other beach city submarkets. That has now changed…
While most turnkey properties or highly coveted locations are at least $1,000 a sq ft, or even much higher, throughout the South Bay; the TRW tract would always offer affordable single-family homes at a discount to the area.
For instance, take this move-in ready custom remodel from 2010 that sold in January:
- 3-beds, 2-baths, 2,307 sq. ft., 6,239 sq. ft. lot
- Closed: $1,973,000
While the style is not exactly what today’s buyers are searching for, the finish quality here is top quality. This home sold in less than two weeks and the buyer was lucky enough to score a slight discount.
This one-level beauty offered great value closing at $855 per sq. ft., far below $1,000+ sq. ft. we are typically used to for a property of this caliber. And while the TRW location might not be a prime location compared to the Tree Section or Malaga Cove, it is a special neighborhood that is truly prime in North Redondo.
Now, due to so few homes on the market and the extreme lack of affordability, TRW tract no longer offers a great bang for your buck just a few months later with new completed sales.
The latest closing on May Avenue this month demonstrates that:
- 3-beds, 2.5-bats, 2,386 sq. ft., 6,053 sq. ft. lot
- Closed: $2,600,000
Sure, this property is freshly remodeled nailing today’s trends demanded by buyers, however, a $627,000 premium to the other May comp mentioned above, for almost the same sized home/lot directly across the street with only a one-car garage, is a steep jump in a short four-month window.
This listing was priced correctly (not greedy) asking only a slight premium to the sale across the street at $2,199,000, but eager buyers desperate for affordable remodeled homes bid this one up by $401,000 and it went to an all-cash buyer. Wowzer.
That is officially a $1,089 price per sq. ft. sale – signaling an end to value in the TRW tract for remodeled / move-in ready homes.
Saying goodbye to value in the TRW tract is will be enforced when this current pending sale officially closes:
- 5-beds, 4-baths, 2,560 sq. ft., 7,087 sq. ft. lot
- Pending asking: $2,799,000
Another fabulous remodel that offers not 3-bedrooms, but a full-sized 5-bedroom home on an even larger lot than the May Avenue subjects.
This listing made a deal in just one week and will set the high watermark record for the TRW tract.
And it will set an almost $1,100 per sq. ft. comp for the neighborhood.
A reset much higher for updated homes in the TRW tract is officially here.
Fabulous Value in the Westvale Neighborhood
Now that value has left the TRW tract, where can South Bay home hunters look for value?
In my opinion, there looks to be great value in the Palos Verdes Peninsula’s Westvale pocket.
For those not familiar with the Westvale neighborhood, it a small pocket of homes in the P.V. Drive North submarket that is only accessed via Eastvale Drive. It climbs the Palos Verdes Hills alongside Crenshaw Blvd to the west and Rolling Hills to the east.
This neighborhood is located in unincorporated L.A. County (not part of RHE, RH, RPV, or PVE), which allows for loose building codes in its larger, more rural feeling lots. And yes, there are peacocks here!
Westvale is situated between the desirable “Lanes” of RHE, the Silver Spur submarket, and “Behind the Gate” in Rolling Hills which all can trade at premium levels pushing the $1,000 sq ft range and often much higher.
Here in Westvale, you can snag property at a nice discount.
- 4-beds, 3.5-baths, 3,271 sq. ft., 32,200 sq. ft. lot
- Sold: $2,525,000
This completely rehabbed home offers a large footprint, huge lot and city views – it sold for just $771 per sq. ft.
Take its fixer counterpart that sold last month at a fair discount to this turnkey sale.
- 4-beds, 2.5 baths, 3,252 sq. ft., 16,161 sq. ft. lot
- Sold: $1,710,000
Even amidst the inventory squeeze the Westvale market bore a $700,000 discount in order to account for needed repairs to make this listing comparable to its $2.5 million comp discussed above.
This is a measly $525 per sq. ft. sale!
And remember, L.A. County will make remodel efforts much easier compared to other South Bay markets, while offering opportunities for ADUs, outdoor living & sports courts, agriculture and even some livestock.
There is a lot to like if you are looking for a project and a long-term stay in Westvale.
And even slightly older but move-in ready homes offer a great deal.
- 3-beds, 2.5-baths, 2,621 sq. ft., 15,493 sq. ft. lot
- Sold: $1,870,000
This one-level, move-in ready home at $713 price per sq. ft is another example of value.
All in all, in a South Bay market that sees $1,000+ PPSF sales – Westvale offers convenient north side of the hill living, top-notch Palos Verdes public schools, and easy building codes for an extremely affordable price relative to what users are paying for RHE and RH homes, and even some well-located/updated RPV homes near Silver Spur.
It is great value without going too far away on the south or east side of the hill.
Final Thoughts
South Bay homes are getting more expensive thanks to the historic inventory squeezes which I will write about further in next week’s blog.
Areas known for their affordability, like the TRW tract, are beginning to surge higher with buyers desperate for listings with nice homes they can afford.
Of course, there are always areas of value if you know where to look if one is open to flexibility over a large area of our South Bay real estate market.
Right now, Westvale is certainly one of those areas to score a lot of bang for your buck, heck, maybe even convert a J-ADU or ADU to make your property even more affordable.