The torrid home market in Fusion South Bay continues to amaze with any new listing being quickly snatched up and almost all of the recent sales having multiple offers and selling for well over the asking price. Since the beginning of October there have been 3 closed sales with my “A” unit listing listed at $530,000 and selling for $547,000, a “B” unit listed at $519,000 and closing at $545,000 and a “D” model with no upgrades listed at $585,000 and selling at $611,000. Those are fairly astounding numbers and the trend shows no sign of slowing down. Currently there are 5 units in escrow and all scheduled to close at very large and above previous peak numbers. What makes Fusion townhomes so highly sought after is the combination of affordability for the location (just east of Manhattan Beach, gated community living, recent construction (2006 and 2007) and all of the features that come along with it, and the highly rated Wiseburn School District.
Coming to the market in early November, this beautifully updated condo offers the perfect combination of newer construction, active lifestyle, ideal location and affordable price. Located at 5404 149th Place #11 in the Hollyglen area of Hawthorne, this upgraded condo offers gleaming hardwood floors, granite countertops, in unit laundry, stainless appliances and an oversized patio. With 2 bedrooms and 2 bathrooms, each on a different level, this is ideal for a multitude of lifestyles. See information and floorplan of Fusion South Bay “A” unit.
Fusion at South Bay is one of the few newer construction gated communities in the South Bay and is ideally located just across the street from Manhattan Beach. Enjoy the community pool and spa, the basketball court, small park or take a short 5 minute drive to the beach. Fusion is also located in the Hollyglen neighborhood with students attending the award winning Wiseburn School District
Vista Sotheby’s International Realty
2501 N Sepulveda, Manhattan Beach CA 90266
Often when we look at the broader world of the real estate market it’s hard to notice just how dramatic a shift can be. It’s equally amazing just how quickly we forget the market we just left…as if we’ll never be back. I focus much of my attention in terms of marketing, selling and blogging about a small gated community in the Hollyglen known as Fusion South Bay. It’s just a pocket of newer townhomes in the South Bay but nowhere have I seen a more drastic turnaround and the implications it has had. I sold a few units at the height of the market and have struggled with the fact that values went down so dramatically and so quickly. As they were constructed in 2005-2007 almost every buyer was truly buying at the peak of the market. The result was a % of short sales and foreclosures not seen anywhere else in the area. Less than a year ago almost 75% of the closed sales were short sales and values plummeted. I showed most of them and, at the time, I almost felt as though you couldn’t give them away….no buyer motivation, no sense of urgency and most of those buyers are probably now kicking themselves. It was truly a buyers market.
Just a year later and oh how the real estate world has changed. Units that had been in the low $300,000s are now in the mid to high $400,000s and buyers are lining up for the next owner that decides to sell. At the moment the one 2 bedroom home for sale, the smallest floor plan in Fusion, is listed at the same price that a 3 bedroom sold for just a year earlier. Those clients that had bought a few years back are once again looking good and those that didn’t purchase at the bottom when they had the chance are certainly wishing they had. In one short year this micro market has gone from barely being able to give away these townhomes, to having buyers and agents eagerly searching off market for the chance to own one.
My how quickly things change and how quickly we forget where we just were.
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With inventory continuing to decline the condo and townhome markets in the Hollyglen communities of 360 South Bay and Fusion South Bay have continued their torrid pace. Both complexes are located along Aviation Blvd in the area of Hawthorne known as Hollyglen. Fusion South Bay was completed in 2007 and 360 South Bay began releasing units in the past 2 years, so both offer a very affordable way of getting new or newer construction in the area which is very rare in the South Bay. According to Manhattan Beach realtor Keith Kyle “many home buyers in the area often start their search looking for homes in Redondo Beach and find that in the mid $400K -$550K range what they can afford is much older and smaller. Fusion and 360 offer a similar location, great schools and a much lower price point. Simply put you get much more for your money.”
The market has been very active with 8 resale units currently in escrow. 360 is still currently releasing new construction units and most are not on the MLS so there are a number of additional sales not noted below. As of March 13th there are no active condos or townhomes for sale but click below for the latest list of homes for sale as it’s continually updated.
While much of the South Bay has been somewhat immune to the wave of foreclosures and short sales that have been so prevalent in much of Southern California, unfortunately the townhomes of Fusion South Bay haven’t been so lucky. Of the 6 homes that are on the market, or currently in escrow, 5 are either short sales or bank owned which is an unheard of ratio in the area.
|P831850||Active||5403||149TH PL #3||$ 364,900||2/3.00||2007/ASR||1410||REO|
|V12041598||Pending||5412||149th PL #7||$ 345,000||2/2.00||2007/ASR||800||Short Pay|
|V12063595||Pending||5511||149th PL #7||$ 348,100||2/2.00||2006/ASR||800||Short Pay|
|S12090059||Pending||5506||149th PL #8||$ 385,000||2/2.00||2007/ASR||1067||Short Pay|
|S12055041||Pending||5404||149th PL #12||$ 499,900||3/3.00||2008/BLD||1790||Standard|
So why is Fusion impacted so much more than surrounding areas. Unfortunately it’s the perfect storm for foreclosures and is due to a number of factors.
- Timing – The project was built in 2005 and 2006 so the original home buyers bought at the very peak of the market, and just before the bubble burst.
- Owners – Most of the units were purchased by two types of buyers. Many units were purchased by first time home buyers with access to loose lending and somewhat risky loans. In addition many buyers purchased in Fusion as a “stepping stone” with no intention of remaining there for long. The other primary buyers at the time were investors thinking they would make good rentals (which they have) but as they were second or even third homes they were also more susceptible to the downturn.
- Self fulfilling prophecy – Just as the specter of the “shadow inventory” has many buyers and sellers concerned, this actually is the reality in Fusion. As there have been so many short sales and foreclosures, it has driven the price down considerably leading to additional short sales and foreclosure. Prices have dropped considerably and until the wave of distressed sales is resolved there is no clear turn around in sight.
- Litigation – for all of 2011 there was pending litigation due to what the HOA considered builder defects. While the issue was being resolved there was no lending available which limited any sales to cash buyers only which hammered prices even further.
Fusion is a great option for buyers looking to be near the beach, with good schools, in a gated community and very new construction for the area. Prices are now favoring buyers looking to get in at the right time. Unfortunately there are 2 sides to every issue and as I’ve sold numerous Fusion condos to some wonderful people, the “great deal” that Fusion has now become isn’t so great for everyone.