New Ocean Front Strand Townhomes in Manhattan Beach
Newly listed on September 19th, two newer construction townhomes have become available on the famous oceanfront walk of The Strand in Manhattan Beach.
Category: Search for 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.
Fusion South Bay Bearing the Brunt of the Foreclosure Wave
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.
| ML# | Status | Address | Price | Br/Ba | Year | Sqft | Type | |
| 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.
110 The Village # 503, Redondo Beach 90277
Oceanview Penthouse condo in Seascape 2 at 110 The Village #503
**Please note that this home sold and is no longer on the market.**
For the feel of vacation living, the penthouse units of Seascape 2 are hard to beat. The beautifully updated unit at 110 The Village #503 was originally priced at $949,000 which was a bit high in my opinion but is now close to an appropriate price at $899,000. The home is listed by Debbie Allen of Remax.
1918 Manhattan Ave, Hermosa Beach 90254
This is one of the more unique homes I have seen in quite a while. It was a custom build on an oversized lot with fantastic views and top of the line finishes and located just 2 blocks from the beach in the Hermosa Beach Sand Section. The house is absolute modern luxury with an abundance of open spaces to take advantage of the beach weather and ocean views. The home is listed by Nick Schneider of South Bay Brokers.
[idx-listing mlsnumber=”S12087513″ showall=”true”]
North Redondo Beach Real Estate and Homes for Sale
Welcome to real estate in North Redondo Beach 90278
By Keith Kyle
Life in the Beach Cities of Manhattan Beach, Hermosa Beach and Redondo Beach has it all…..wonderful weather, great neighborhoods, proximity to the beach, award winning schools and more. Along with all of the wonderful aspects comes a lofty price tag as the demand for homes in the area, even in today’s market, remains high. The most affordable area in the Beach Cities is known as North Redondo. Redondo Beach is broken into the two main areas of North and South Redondo and the dividing line is generally along 190th Street. What makes the area more affordable is the abundance of different types of housing options not found as frequently as in other nearby areas. Home options range from single family homes on oversize lots, to a multitude of townhome options, to various condominum complexes.
View current North Redondo Listings
Keith Kyle, with Vista Sotheby’s International, specializes in fine north Redondo Beach properties. Let us be your Golden Hills, Golden Triangle and TRW tract realtors and experience our impeccable service, knowlege of Redondo Beach and Torrance, and the South Bay.
Ideally located just east of Manhattan Beach and Hermosa Beach, the areas of North Redondo Beach offer more affordable housing options than it’s neighbors to the west while still offering excellent schools, proximity to the beach, and charming neighborhoods.
Located along some of Southern California’s finest beaches, Redondo Beach has something to offer everyone. Bordered by the Palos Verdes Peninsula to the south, Hermosa Beach to the north, and Torrance to the east, Redondo Beach offers great schools, proximity to the beach, and an abundance of activities. Some highlights include ocean activities and dining at King Harbor, great shopping in the Riviera Village, the Redondo Beach pier, and nature walks at Wilderness Park.