There is no question that the luxury flipped home market has slowed considerably in the past 6 months. With “fixers” being listed and sold at fairly unbelievable prices, the opportunities just are not often there for flippers. The most recent rehab properties to come out are generally fixer homes purchased at the beginning of the year or sooner. The recent flip at 647 24th Place in Hermosa Beach should be a good litmus test whether the market is still there for recently flipped homes.
Unlike most flips, with the focus being almost exclusively on the easy cosmetic upgrades, the home at 24th Place did some major work, and the results were fantastic. When we first saw this home back in November of 2014 it hit the market at $1,079,000. It sold quickly at $1,300,000. The home had great views, a good sized yard, and a nice location west of PCH, but boy did it require some imagination. Imagination they had….
The home has been reinvented and layout completely reconfigured. When we first saw the home the kitchen, living room and family room were on the first floor, while all of the bedrooms were on the second floor. This redesign went well beyond the norm and completely flipped (pun intended) the layout with the bedrooms now downstairs and living areas upstairs. What that’s done is to allow the more frequently used areas to have the best views in the house. In addition they extended the front living room ceiling and added an entirely new row of windows allowing for a much larger sense of space, great light, and spectacular views. The home is currently listed for $2,200,000 which is a very big number for a home this size in this neighborhood, but with the impressive new layout, high end finishes, and so little on the market….it just may be close. Click here to see details and photos of the home at 647 24th Street in Hermosa Beach.
315 26th Street, Hermosa Beach – Triplex for sale 3 blocks to the beach
This is a great opportunity for the savvy investor searching for rare beach properties in an ideal location. Legal non-conforming triplex with a bonus bed/bath. Tax records show a total square footage of 2048
Front house is a 2 bed/1 bath detached home with some ocean views. According to the tax records there is another bedroom and bath for the unit but they are not attached and are downstairs off of the garage. It’s not currently being used but could be used for a bonus unit. It has a separate entrance and no kitchen so technically it’s part of the upstairs unit. It would need quite a bit of work to make it usable, but the owner has used it in the past and it could be a great option for a future owner. The front house has a one car garage and a workshop that has the laundry (for all units) in it.
Back house has two units and the two houses are separated by a patio. Upstairs rear house is a small 2 bed/1 bath.
Back house lower is a one bedroom/1 bath. There is a one car garage but it’s been used to make the lower unit larger and has been like that for a very long time.
It’s a street to alley lot 3 blocks from the beach. The most recent multi unit properties in the neighborhood were: 301 28th Street listed for $1,850,000 and sold for $2,250,000 (duplex with 2 2bed/1 bath units at 1500 feet total) and 227 29th Street listed at $2,250,000 sold at $2,330,000 (duplex with 2 2bed/2 bath units at a little under 2500 feet)
There are indicators of the overall real estate market and then there are homes that seem to reflect the market conditions all by themselves. 2840 Hermosa Ave in the sand section of Hermosa Beach is certainly one of those homes and at it’s current listing price is certainly raising the stakes once again. It seems that the home is on the market just about every year and the most recent jump in value may just say it all about how much demand there is for sand section ocean view homes. The home was built in 2002/2003 and since then has been on the market 12 times, sold 5 times and is now back as a new listing. If the frequency of the listings isn’t an eye opener the latest price jump certainly is. It originally sold for $2,204,000 in 2003 and then sold several times between 2005 and 2013 for prices in the low to mid $3.0Ms. The most recent sale closed in October of 2013 for $3,600,000. The latest listing, currently on the market, recently came out at $5,100,000….a price that not too many years ago was ocean front and of more recent times the only $5.0+ sales were new construction. We’ll see what the home eventually sells for but anything over $5.0M will be quite the indication that the market and values have exceeded just about anyone’s expectations.
In this market there are definitely homes that sell over list price……
And then there are HOMES THAT SELL WAY OVER LIST PRICE.
Located on the corner of 24th and Hermosa Ave and only a few hundred feet from the sand, this home was listed at $2,000,000. Although the home was a fixer at best the location is highly sought after and coveted by builders for the size of the lot and the potential views and the proximity to the sand. Unbelievably the home listed at $2,000,000 closed at $2,760,000!!
If you’re looking for a foreclosure deal in Hermosa Beach it may be a while. In all of 2014 only 5 “distressed” homes were sold 4 of the homes were short sales with the other being a bank owned property. In general the few short sales and foreclosures that did sell were good buys with the average price per square feet on the distressed sales was $585 while the average price per foot of normal sales (not including oceanfront properties) was $741. 2014 saw 206 on market homes sales in Hermosa Beach so the distressed market was a very minimal factor. Currently there are no foreclosures on the market and the last listing was the home on 6th Street that closed in September.
As prices have risen so dramatically over the past 24 months it’s unlikely we’ll see any distressed sales in the immediate future but as homes are now reaching record prices it may be a matter of time before some homes once again are underwater. Please feel free to contact us for more information on the real estate market in Hermosa Beach or foreclosure opportunities in the neighboring communities.
As builders buy just about every beach bungalow and build the very largest homes the city will allow, one thing that seems to be on the endangered list is the backyard (or front yard for that matter). Most lots in Hermosa Beach were never huge, usually ranging between 2100 and 4000 feet, but the original homes on those lots were generally one story bungalows with either larger backyards or detached garages with a smaller yard. Due to city building regulations that allowed builders to consider balconies and, more importantly, roof decks, as open space, yards of any significant size were basically no longer required. Developers took full advantage of this rather builder friendly ruling and homes became larger and larger and pushed to every possible inch of the property. What used to be yard is now part of the home and with only 10% setbacks on sideyards homes on 30 foot wide lots (which is very common) only have 3 feet to the property line, or 6 feet from the neighbor. Unfortunately this has taken it’s toll on the beach “charm” as homes nowdays are simply giant rectangular boxes that take push outward and upward to get maximum square footage. Most of these homes are beautiful, especially the interiors, but unfortunately as more and more original bungalows are replaced the beach community charm is certainly lost in some ways. When buyers have a “yard” on their need list it almost rules Hermosa Beach out which is certainly a bit sad. Unfortunately there’s no stopping this “progress” but if you’re lucky enough to have a yard….you’re pretty lucky and in rare company.
Just two homes from the beach, this beautiful home located at 123 29th Street in the North Hermosa Beach sand section offers the best of California coastal living. Custom built in 2003 this quality home is where urban beach living comes to life. This corner lot home offers sweeping views from Malibu to Palos Verdes. Three levels of luxurious space with 5 bedrooms, 4 of which are on the same level, 5 bathrooms plus an ocean view office. The home has a large 3-car side by side garage, perfect for housing surfboards and beach gear plus extra parking for up to 2 cars behind. Sitting in the quiet North Hermosa neighborhood this home is a great beach home and beautifully combines luxury with an informal coastal feel. Bathed in natural light the home features open beamed ceilings, hardwood floors, beautiful kitchen perfect for entertaining and much more. All of this in the wonderful beach community that is Hermosa Beach with a small town feel and nationally rated schools. Contact us for more information.
One of the best things about living in Hermosa Beach is….well….living at the beach. Hermosa is a great beach town with a real sense of old time community. One of the housing options fairly unique to Hermosa is the walkstreets. There are not all that many and most of the walkstreets are either west of Hermosa Ave, meaning right on the beach, or the few in the north sand section just a few blocks back.
Nowhere is there better beach style living than the homes of the Hermosa Beach walkstreets with a combination of new construction mixed with fantastic original beach bungalows. The new home listing at 63 18th Street happens to be one of those cool beach cottages that remind you casual summer days and the relaxed feeling of summer vacation.
The home actually consist of a 3 bed/2 bath main house and a 1/1 apartment over the garage. The listing agent David Caskey describes it as:
“a classic two-story cottage style home, straight out of a coastal living magazine, w/3 bedrooms & 2 baths in the main house & a bonus 1 bedroom apartment/loft over the garage in the rear! A large front patio opens to the tree lined walk street that leads right to the beach, w/abundant space for outdoor dining & entertainment, while a courtyard lies between the units providing a patio for the rear unit or just a more private area to enjoy.”
The best part of living at the beach is…..living at the beach. When it comes to really living at the beach, the “walk streets” of Hermosa offer it all. These pedestrian only “streets” are only found in the sand section and almost always mean that the homes are within a few blocks of the beach.
What makes these streets so unique and so valuable?
Most sand section homes on full lots face the street in the front, homes on both sides and an alley in the back. Fronting the street means the obvious challenges of car noise, parking challenges and a much higher level of traffic, especially in the summer. Walkstreets front a sidewalk instead of a street making for a much quieter, safer, and community friendly situation.
Most homes on these streets are full 30×90 foot lots with some being half lots or partial lots. There is great demand by builders for
older “fixers” or tear downs due to the premium location. Homes generally start in the $3,000,000 for a lot value sale and most larger homes start in the mid $5,000,000s.
What makes the walkstreets different from the walkstreets in Manhattan Beach is the abundance of original beach bungalows. As Hermosa has always had a bit more of a beach vibe, many of these older homes remain with some being beautifully remodeled and others still in fairly original condition. These original cottages give these walkstreet a real beach feel and makes for an ideal environment to live the good life.
Unfortunately searching and finding homes only on walkstreets isn’t easy as there is no specific category on the local MLS to designate them. If you would like to receive walkstreet listings please contact us or fill out our daily Hermosa Beach listing request and keep you notified anytime a new home comes on the market.
Neither the weather nor the real estate market has cooled off much now that summer is over and there doesn’t appear to be any major shift in the market in the coming months. Here’s what’s happening in Hermosa Beach….by the numbers.