If you have been following my blog for over a year, then you probably have come to learn that I tend to write about the market slowing down during the holidays and the Summer months.
When the Fourth of July hits, you get a double whammy. A lot of people skip town this weekend and take real estate a lot less seriously until the Fall.
The absolutely best time to score an awesome real estate deal, in my opinion, is between mid-November and mid-January during the holiday season.
But what is the second best time? No question, for me, it is between July and August. And, with a long Fourth of July weekend this year, it is a great time to make a move.
If you have been watching a few properties for a while now, then get out there and make some offers this weekend!
Not sure which properties might be good to cherry-pick? No problem, I provided a list below…
Manhattan Beach Tree Section
- 1413 Oak Avenue
- 4 bed, 2.5 bath, 3,480 sq. ft., 4,202 sq. ft. lot
- Asking: $2,449,000
Over the last twenty four months, the Manhattan Beach’s Tree Section has had 52 home sales over 3,200 square feet. Of those 52 sales, only five sold below $2.5 million.
The listing on 1413 Oak Avenue is clean, cute, and crisp on the interior. After only one month on the market, the Sellers have already cut the price by $50,000. I am sure these Sellers are feeling the slow-down with the height of Summer coming.
If you were to low-ball and grab this one in the low $2.3 million range, it would be a steal and one of the lowest sales for a home of this size in the Trees. Not to mention, it would sell below $700 a square foot in an area known for property pushing $900 and $1,000 per square foot.
Valmonte in Palos Verdes Estates
- 4004 Via Opata
- 3 bed, 2 bath, 1,203 sq. ft., 8,304 sq. ft. lot
- Asking: $1,099,000
This is a new listing that hit the market just this week! It would also be the lowest sale to happen in the very hot Valmonte market in over three years (excluding P.V. Drive sales).
This home will for sure go over its asking price. However, the timing of this week will likely garner fewer offers as a lot of professional investors will be out of town and resign to the old saying: “There is always another deal.”
Not to mention, there are even fewer retail buyers that are comfortable doing a major remodel or ground up build on this lot.
This property will definitely go over-asking but it will sell for a discounted price versus what it should get on a non-holiday weekend. Any price under $1.15 million is a solid deal in this highly desirable sub-market…and it might happen with less competition.
Hermosa Beach Sand Section
- 856 Cypress Avenue
- 3 bed, 1 bath, 892 sq. ft., 3,147 sq. ft. lot
- Asking: $1,299,000
This listing expired the day after I completed this blog but it is worth mentioning. 856 Cypress is a spec developer play to build two (albeit small) town homes.
In fact, I was offered this property off-market over three years ago when I was building spec homes. At the time, the Seller wanted $1.4 million and I offered $1.2 million. We never came together.
The property officially came to market in 2016 asking $1.425 million and sat through 2017. In 2018, it was dropped to $1.399 million and this year, it re-listed asking $1.299 million.
They should have taken my offer.
That being said, I believe this property is now a “covered land play” for someone who does not need a new home or a ton of space. Also, I believe this property is for someone that wants to stop paying rent, earn some tax incentives of owning, and then realize the land play in the next real estate cycle.
Unfortunately for the Sellers, construction prices have risen drastically since 2016. It is not worth $1.2 million anymore.
Today, it is worth about $1 million to a developer, but if a retail buyer can snag it at $1.1 million or lower, then it is a good one to sit on and enjoy the proximity to the beach while letting time and inflation do the work for you.
The Avenues in South Redondo Beach
- 844 Avenue B
- 5 bed, 5 bath, 4,637 sq. ft., 6,100 sq. ft. lot
- Asking: $2,500,000
There has been great demand for large, new homes on The Avenues over the years.
In fact, this listing sold for $2.4 million back in 2017.
The owner is clearly motivated bringing the property out asking only a $100,000 premium to the sale in 2017. They will surely lose money after selling costs. With a Seller that is realistic right off the bat about the true value of the home, maybe they will consider an offer at the 2017 sale or less?
Between Pacific Coast Highway and Prospect, this listing would be the best price for a 3,500+ square foot home in the last year on The Avenues that is not Mediterranean-inspired. And at a $539 price per square foot, any price per square foot lower is starting to get close to replacement value.
The home has been sitting on the market for 155 days, which is tiring for any Seller. Now is the time to make a low offer and see if it sticks.
Conclusion
A long Fourth of July holiday weekend and the slowing Summer months are going to make for some motivated Sellers throughout the South Bay.
This is just a small sampling of home listings that could offer amazing value if you put pen to paper. Great buys only happen if you write offers.
Have a safe and fun holiday weekend…and while you are at it, go make a great deal too!