The South Bay real estate market keeps on humming in 2021…
With most beach city and Palos Verdes hill pockets seeing prices up 10% or more, as referenced in my past blog here, as well as historically low inventory, which I covered in another blog post here, there seems to be nothing stopping the strength in our local markets.
The strength even includes “ultra-luxury” home sales that can take months, or even years to sell.
Now, what qualifies as “ultra-luxury” in the South Bay? I have no clue. But for the purposes of this post, I am defining it as any sale $9 million or higher.
Let’s look at some past history for South Bay sales above $9 million:
- 2019: 8 sales
- 2018: 9 sales
- 2017: 16 sales
- 2016: 4 sales
- 2015: 7 sales
As you can see, $9 million sales happen, but they are generally rare here in the South Bay. We are used to seeing single-digit sales at this level except for a gangbuster’s year that happened in 2017.
So, how did the ultra-luxury home market shake out in the pandemic year of 2020? Well, as you can see below, there was a whopping 24 sales!
- 2020: 24 sales
That is very impressive. But, with the strength of this market, are you shocked by anything anymore? I certainly am not.
With that, we are early into 2021 and the ultra-luxury market is starting right where it left off. Already, our market has closed four sales above $9 million in the first 45 days of the year.
That puts a pace of 32 ultra-luxury sales above $9 million this year.
It is still way to early to think that the pace will keep up and hit such a larger number, but it is fun to think about. In the meantime, let’s explore the four sales that have started 2021 off with a bang.
Manhattan Beach
- 1920 The Strand, Manhattan Beach
- 5 beds, 7 baths, 5,574 sq. ft., 3,340 sq. ft. lot, built in 2002
- Sold Price: $16,250,000
This prime corner lot home just a short walk to the famed Manhattan Beach Pier closed in January to kick off the year as 2021’s first ultra-luxury sale. With ocean front living and endless views, this home offered a well-maintained, move-in ready retreat which included a gym, nine-seat theater, and elevator.
Although it was listed in May of 2020 and took just over 200 days to close, the owner was able to get close to the full asking price after beginning the listing at $16.9 million.
Palos Verdes Estates
- 612 Paseo Del Mar, Palos Verdes Estates
- 6 beds, 9 baths, 8,869 sq. ft., 38,781 sq. ft. lot, built in 2002
- Sold Price: $9,200,000
This Palos Verdes view estate, known as Villa Activista, offered some of the best ocean and coastline views for a lower Malaga Cove home. The home is highlighted by 300-year-old paving stone from the south of France, limestone columns, and solid bronze French doors. A pool, spa, expansive gardens, and guest house add to the amenities.
To garner a sales price above $1,000 a square foot speaks volumes about the quality of the home and views, when boasting close to 9,000 square feet of living space. Interestingly, this home listed for $8.75 million in September of 2020 and was immediately raised just two weeks later to a price of $9.5 million. Eventually, it sold for $9.2 million to start February.
Hermosa Beach
- 2805 Tennyson Place, Hermosa Beach
- 6 beds, 8 baths, 6,392 sq. ft., 20,160 sq. ft. lot, built in 2009
- Sold Price: $15,800,000
Located in the “Hill Section of Hermosa Beach,” this 2009-built estate offers panoramic views looking south towards Palos Verdes. This home offers not one, but two wine cellars that can hold up to 2,500 bottles in total. In addition, the garage has a lift system to store up to five extra cars on the property.
Now, this home failed to sell in 2017 at its originally asking of $22.5 million…and then again failing in 2018 and 2019 at prices of $19.9 million and $17.5 million, respectively. It was not until 2020 that it came out asking $17.25 million, selling just 84 days later at $15.8 million.
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
“Behind the Gates” in Rolling Hills this sprawling five-acre property sits at the top of Palos Verdes. There are views of the city from one side and views of the Pacific Ocean and Catalina on the other. Not only that, but the home was also designed by world-renowned architect, Richard Landry. Need I say more?
The home was brought to market asking $9.995 million and made a deal in just 17 days for OVER asking, and ultimately closed for $11.1 million. While homes in the South Bay selling for eight figures is rare, seeing an eight figure home sell for over asking is even rarer. An over asking closing is a shock, while perfectly demonstrating the unbelievable strength of this real estate market.
No inventory, affordable homes garnering hundreds of tours and multiple offers, and now ultra-luxury sales staying very hot…the pandemic real estate market of 2020 heading into 2021 continues to amaze.
Richard Haynes
DRE: 01779425
For more South Bay real estate insights, subscribe and follow Richard’s social channels below:
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]