7 Day Market Update- Hermosa Beach

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Dirt is the new gold. This year, we are seeing more new construction as the market heats up and the value of land continues to increase. They are not making any more dirt and the number of people who want to live near the water far surpasses the number of properties available to purchase. Due to the low inventory, the threat of our low interest rates rising and the economic rebound, consumers are buying smaller, older homes and building their dream homes.

The median sale price is up just over 14% citywide this year versus 2013 and up approximately 30% versus 2010. However, the number of year-to-date sales are down 11% this year versus last year, mostly due to the lack of inventory.

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This is a market snapshot of Hermosa Beach Real Estate over the last 7 days. We are not presenting these properties as our listings. Click the IDX link below to see the recent Active, Pending and Closed properties in HB.

NEW THIS WEEK (See photos below)
3 Active Listing (click to see)
4 In Escrow (click to see)
6 Closed (click to see)

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125 1st Ct. Sold for $1,350,000
Duplex, 1 block from the beach, south end of Hermosa, income earning, etc! This property was on the market for about 3 months before going into escrow. It originally came out at $1,499,000 and they sealed the deal at $1,350,000. Rumor has it that it was a bootleg property that was converted into rentable units. If the rents equal approximately $5000 per month or $60K per year, it gives this property a GRM (Gross Rent Multiplier) of 22.5, is in line to slightly high for it’s southern location. However, it’s a relatively lower price point to purchase a sand section income property, 1 block form the ocean. The dirt value of this 2868 sq. foot lot is probably worth close to that.

Screen Shot 2014-09-05 at 1.29.24 PM350 33rd St. Sold for $2,250,000

This is a duplex of another nature. It is located on the north end of Hermosa, 2 blocks from Manhattan.This one offers more of a single family/townhome style option where you can live in 1 of the 2 spacious units and rent the other out. With around $7K in monthly rent or $84K per year, it’s almost a 27 GRM. However, the value is in the location and the usability of this property. The top unit is a 3 bedroom , 2 bath with ocean views and makes for a great owners unit. The bottom is a large 2 bedroom, 2 bath unit. Each has it’s own 2-car garage as well. This is a home with income included.

909 21st St. Sold for $1,305,000
Another over list sale. This one sold slightly over at $1,305,000 after coming on to the market for $1,299,000. At $533 per sq. foot, it’s hard to find a 2356 sq. foot single family home with a 4886 sq. foot lot for that price….hence the quick over list price sale.

1928 Valley Park Ave. Sold for $1,901,000
This area is hot! The Hermosa valley area of the sand section has been very sleepy over the past few years…until 2014! Earlier in the year, we saw a $4.4M sale just a few blocks away. I think the neighbors are alert to the current value and the selling possibilities. This one went way over the list price. It sold for $1,901,000 after hitting the market for $1,749,000. It’s clearly a land value purchase, since the home that currently exists on the property is 2 bedrooms and 744 sq. ft. This benchmark is setting the new bar for the cost of dirt in the area. At $297 per dirt sq. foot (see dirt values), it’s still a well price land acquisition.

1226 6th St. Sold for $885,0001226
A SHORT SALE? (see short sale) Lately, short sales are relatively far and few between here in the beach cities, unlike the downturn a few years ago. At $885,000, this property was a deal, even though this home is located in the far eastern section of Hermosa. It’s hard to find a single family home on a 4005 sq. foot lot for under $1M. This home was last purchased in 2002 for $525,000.

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Visit our website www.Hermosa411.com to see weekly market updates and property reports. Sign up and receive the weekly report in your inbox and stay in tune with what is happening in our small beach community.

Call or email us today to get your current 2014 property value. You may be surprised.

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Post by Darren Pujalet

Darren has written 316 articles.

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