Keith Kyle realtor for sale sign

Want to Know Why You Can’t Find a South Bay Home?

If you’re like many South Bay home buyers, you’re probably experiencing theKeith Kyle realtor for sale sign frustration that so many others are….there are no homes to buy.  With this incredibly low inventory the few homes that do come on the market don’t last more than a few days and often sell for prices that would have been a major challenge just a few months ago.  It might be temporary, but back are the days of multiple offers, conditions favorable to the sellers, offers over the list price and a number of cash buyers to compete with.  Inventory just keeps going down with fewer and fewer available homes to by.  If it’s hard to picture just what’s happening the chart below couldn’t be clearer.  The light green bar shows the number of active homes for sale in the cities of El Segundo, Gardena, Harbor City, Hawthorne, Hermosa Beach, Lawndale, Lomita, Manhattan Beach, Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, San Pedro, Torrance.  The teal columns show sold homes and the red bar shows the pending home sales.

Manhattan Beach walkstreet homes

Ultimate Beach Living in Hermosa and Manhattan Beach Walkstreet Homes

Something relatively unique to Manhattan Beach real estate and HermosaManhattan Beach walkstreet homes Beachare the homes located on “walk streets”. These walkstreet locations offer the absolute ideal in community beach living as they are located on lots that have parking and garage at the back of the home and the front of the home sits on a pedestrian only sidewalk.  According to Keith Kyle, a top realtor  with Vista Sotheby’s International, “These walkstreets offer a sense of community that is a bit different than other areas.  As the front yards and patios all face the sidewalk the walkstreet often becomes the center of the community for these streets.  They are very family friendly as there isn’t the risk that busy streets and cars create so it has a very safe feeling.  As they are almost always located within a block or two of The Strand and the beach it has that old school beach community feel”.

Walkstreets are very limited and are only in the sand sections of both Hermosa and Manhattan Beach.  They range in size due to the contours of the streets they cross but all create a very community and family friendly environment and are some of the most sought after locations in the South Bay.  Prices in Manhattan Beach generally start around $3.0M (usually on a corner of a walkstreet and moderately busy street) andquickly go up from there and prices are now reaching into the high $5.0M range for homes with big views and closest to the beach.  Homes in Hermosa Beach start in the mid $1M range (some homes have unusual situations such as no garage, small lot, etc) to the new high water market of $5.25M for the home mentioned above at 41 16th Street.  In Hermosa Beach the streets are generally flat so views are not something overly common, but that’s not the case in Manhattan Beach where the slope of the hill often means just about every home enjoys some nice ocean views.

Click here to view the current homes for sale in the Sand Section of Manhattan Beach or visit our Hermosa Beach Sand Section listings page.

 

Manhattan Village Real Estate Market Activity

While much of the South Bay and Manhattan Beach real estate markets suffer from low inventory and high demand, making it difficult for many buyers to find the right home, Manhattan Village has seen an abundance of listings in the past month.  There are currently 4 homes on the market, 2 of which are court homes and two are town homes.  In addition a plan 5 estate home is soon due to come on the market as well.  In addition there are currently 3 court homes in escrow as well as 2 estate homes, which are actually single family homes located in a different area of Manhattan Village.  Manhattan Village is a gated community in the coastal community of Manhattan Beach and home prices generally range from the low $700,000s to over $2.0M for certain estate homes.

Condos Bearing the Brunt of The Hermosa Beach Foreclosure Market

While we have been buffered a bit from the distressed home market, foreclosures and short sales are still an active part of the Hermosa Beach real estate market.  Not surprisingly foreclosures and short sales in Hermosa Beach over the past 12 months have consisted primarily of condos.  Why is this?  From my experience there are several factors.

  • Starter Homes – In a very high end market such as Manhattan Beach and Hermosa Beach, it is inevitable that many of the homes that eventually find their way to the foreclosure process are considered “starter homes”.  Many or most of these homes were attainable during the loose lending days and many were first time home buyers taking out adjustable mortgages or taking loans that were very aggressive compared with traditional standards
  • Moving up – Condos in towns such as Hermosa Beach are often considered “stepping stones” and although a good way to start the process of home ownership in a high end market, the intent is often to live in the home only long enough for values to go up, use the equity and buy up.  This is a fine strategy if the market is going up.
  • Demographics – Condos are also often bought by young single people, or younger couples.  Once again they are a starting point, and the plan is often to sell and buy up once there are kids involved.  Again the challenge becomes trying to sell in a down market.
  • Shorter term owners –  The other aspect that separates condos from single family homes is the relatively high turn over and therefore higher % of short term owners that bought at the peak.  For some of the reasons above condo owners are generally shorter term and therefore many bought at the peak of the market and the decrease in home values impacted those owners far more than those that have owned for years and years.

Below is a list of the current “foreclosure” listings in Hermosa Beach.

 

Of the 5 current “distressed” homes for sale in Hermosa Beach, 4 of them are condominiums with the other being a townhome.

 

Ahh…The Price of Paradise

I’m often asked just what makes South Bay real estate so expensive?  Well sunsets like this in Manhattan Beach and Hermosa Beach are certainly part of the reason.  Ahh the price of paradise……

 

Just another typical July night in Hermosa Beach.  This is a view north looking towards Manhattan Beach and the Manhattan Beach pier.  Imagine this being your nightly view which is the reality for the ocean front homes of The Strand and Esplanade in Redondo Beach.

ARE YOU INTERESTED

IT'S TIME TO DISCOVER

redondo beach

Vista Sotheby's International

Vista Sotheby’s International Realty is one of the top real estate brokerages in the South Bay and Southern California with offices in Redondo Beach and throughout the South Bay

ADDRESS:

1801 S Catalina Ave, Redondo Beach, CA 90277

Phone:

310.251.2344

E-mail:

keith.kyle@vistasir.com

CONTACT AGENT

DRE#01712785

keith kyle

Top Producing Realtor

ENQUIRE

Sotheby's International

Welcome to Sotheby's International Realty representing buyers and sellers of fine South Bay and Southern California properties

Redondo Beach Real Estate & Homes. All rights reserved. Information deemed reliable but not guaranteed

Keith Kyle – Licensed Realtor – Vista Sothebys International Realty – DRE#01712785

The listing information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties to our franchisees (who in turn supplied it to us), we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. All dimensions are approximate and have not been verified by the selling party and cannot be verified by Sotheby’s International Realty Affiliates LLC. It is recommended that you hire a professional in the business of determining dimensions, such as an appraiser, architect or civil engineer, to determine such information. Sotheby’s International Realty ® and the Sotheby’s International Realty Logo are service marks licensed to Sotheby’s International Realty Affiliates LLC and used with permission.