2014- A Year in Review for Hermosa Beach Real Estate

CLICK BELOW TO LISTEN AND SEE THE HERMOSA YEAR IN REVIEW


CLOSED SALES
Looking in the rear view mirror, 2014 looks like another great year for our real estate market here in Hermosa Beach. Unfortunately for some, inventory is still extremely low.

This decrease in supply has amplified the demand and helped sellers command more money for their beach properties. Continued low interest rates have also helped push the needle in favor of demand.

As you can see below, the median price point moved up to $1,275,000 in 2014 from $1,100,000 in 2013. 2014 had more construction permits pulled at City Hall than any year post bubble. This means we should see a lot of new construction and remodeled homes in 2015. If interest rates stay low, it looks like this year (2015) may be another solid real estate year here in Hermosa Beach. One thing that is apparent is…people want to live at the beach and Hermosa is a great community by the water that has a lot to offer.

See highlights below:
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INVENTORY IS STILL HISTORICALLY LOW

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Here are some of the highlights of 2014:

1517 Loma… Sold for $1000 sq. ft.
1517$1000 per sq. ft.! That price seems to be the 2014 benchmark for a new construction home with ocean views. This property features a rooftop deck with panoramic views from Palos Verdes to Malibu and around to the Hermosa Valley.

 

1954 Bayview $1,499,000 list,…sold $1,955,000 ($456K over list) with more than 25 offers.
1954This one sold right away, with more than 20 offers. It’s a tear down that will be redeveloped for sale in 2015.

 

2618 Manhattan… $1000 sq. ft. teardown
2618This 1940-built home sold for $1,980,000 or $657 per dirt sq. ft.(based off the lot size). Rumor has it they will be asking $5M+ for a brand new custom home. This is a less desirable location on Manhattan Avenue due to its proximity to commercial neighbors (UPS store, etc.) and the 5-point intersection with 27th street/Gould. I look forward to watching this one.

 

21 4th street… $1916 sq. ft. (West of Hermosa Ave. walk street)
21Originally listed just under $2.6, they sold quickly for about a 10% discount off the list price.
We wrote this when it came out:
Very few full-lot walk streets come to the market for sale, making them desirable and more challenging to compare to other sales. This home last traded in May of 2012 for $1,772,000. If you compare it to itself, it is currently listed for 46% more than it was acquired for in 2012. That increase is considerably outpacing the market, however, all it takes is one “have to have it” type buyer?
Well, it still out paced the market, with a 30% gain from the last sale in 2012.

 

2056 Hermosa… Sold for $1000 per dirt sq. ft. (Teardown)
2056This 1937 built home sold for $2,615,000 to a builder. It’s a 2,690 sq. ft. lot with un-obstructable views that look right down the 21st walk street. These lots rarely come up for sale. The lot sold for almost $1000 per dirt sq. ft.

 

647 24th… 2500 sq. ft. lot. Sold for over asking.
647YES…another well over List-Price sale. This property sold ALL CASH for $221,000 over the list price of $1,079,000. If this property isn’t going to be demolished for a newly constructed home, it will require a fair amount of money to remodel it. 647 24th has the potential for very nice hillside views toward the ocean and Palos Verdes.

555 21st… Sold for $4,400,000 in the Sand Section valley. 15,709 sq. ft. lot.

555Even though it’s on a 15,709 sq. ft. lot, this is the highest price sale for this neighborhood…ever! This 4458 sq. ft., 1992 built home sold for $1,130,000 back in 1998 before it was completely remodeled. This year’s sale was a huge number!

2624 The Strand… $8,950,000- Highest sale of the year.

2624$8,950,000. Another huge sale on The Strand! This one had an all cash offer before anyone else could see it. This home was built in 1962 and was not recently updated, however it has an A-level Strand location. It went into contract and closed within 14 days. That’s how quickly you can get things done when you have $9 Million in cash to buy a home.

HERE IS A LOOK AT THE 25-YEAR APPRECIATION PERCENTAGES FOR HERMOSA BEACH.
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Post by Darren Pujalet

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