2017

South Bay Tops $4.1 Billion in Real Estate Sold

$4,116,845,572 Worth of Real Estate Was Sold in South Bay in 2017

The local real estate market has been rocking the past couple of years, and 2017 was no exception. Manhattan Beach continues to lead the charge and closed the year with a new record average sales price of $3,080,193. Manhattan Beach also had two record sales over $20 million, as 1000 The Strand broke the all-time high of $21,000,000. Interesting, of the (11) total closed sales over $10 million in the South Bay, Manhattan had (8) of them! (PVE & Hermosa Beach each had one.) Finally, there were (55) total closed sales over $5 million last year, and (114) at or above the $4 million mark!

Looking back, the ultra-high end slowed a bit towards the middle of 2017, but regained steam to close the year strong. The lack of available inventory was, once again, the big story as buying demand was solid, especially in the under $2 million range. Check out the chart below to see how it looked per city.

MARKET RECAP
SOUTH BAY 2017

#Sold

Avg. Days to Sell

Avg. Price SOLD

Median Price SOLD

Average Price Sq Ft / SOLD

Highest Closed Sale Price

Manhattan Beach

342

49

$3,080,193

$2,470,875

$1,080.01

$21,000,000

Hermosa Beach

107

40

$2,742,197

$1,850,000

$763.84

$14,150,000

South Redondo Beach

112

33

$1,527,122

$1,325,000

$653.45

$2,925,000

North Redondo Beach

197

29

$1,026,653

$975,000

$624.48

$1,890,000

Hollywood Riviera

120

30

$1,475,947

$1,362,000

$702.50

$5,920,000

Palos Verdes Estates

191

54

$2,248,179

$1,875,000

$727.09

$13,840,000

Rancho Palos Verdes

396

39

$1,446,946

$1,312,500

$572.59

$5,500,000

Rolling Hills Estates

71

58

$1,711,358

$1,565,000

$584.88

$2,990,000

Rolling Hills

19

69

$3,181,658

$2,450,000

$802.44

$6,200,000

El Segundo

80

38

$1,307,771

$1,271,750

$687.94

$2,155,000

(All property data taken from MRMLS Closed Sale Single Family Residence (SFR): for areas: El Segundo, Manhattan Beach, Hermosa Beach, Redondo Beach, Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates & Palos Verdes Peninsula. January 1, 2017– December 31, 2017) Information is deemed accurate but not guaranteed.)

Although it is often said that the year ahead will be “interesting,” 2018 might actually be. The outlook for the year is moderate growth in home prices as the economy continues to stay hot – but that could change with the proposed (3) interest rate hikes this year, tax regulation changes, and any stock market correction. And don’t forget the geo-political landscape, which could change at a moments notice.

Beyond what’s happening in the local real estate market, one thing is for sure, it’s sure hard to beat the lifestyle here in the South Bay.

Wishing you all the best in 2018!

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.” Lao Tzu

Record-Breaking Real Estate Deals in Los Angeles 2017

The City of Angels became the city of nine-figure homes in 2017, with the priciest—in the city and the country—being the listing of the mansion from the 1960s TV-series “The Beverly Hillbillies,” which hit the market in August for $350 million, Mansion Global recently reported.

But while Los Angeles has one of the healthiest high-end property markets in the U.S., prices aren’t all astronomical, according to a third-quarter report released in October by Douglas Elliman. The median sales price for luxury single-family homes, defined as the top 10% of the market, was $9.3 million—unchanged from a year ago, and hundreds of overpriced luxury properties dropped from the market in 2017, leaving inventory at about 60% of what it was last year, the report said.

Properties saw big cuts too. Opus, a Beverly Hills spec home that released an unusual promotional video featuring gold-painted women writhing next to a Lamborghini, dropped out of the $100-million-club in September after a $15 million price cut. It was joined by a 31,000-square-foot mansion in Bel Air. The spec house was first listed in July for $100 million, but after being taken off market, was relisted in November for $90 million.

Naturally, though, some big price tags were turned into big deals this year.

In August, music power couple Jay-Z and Beyonce dropped $88 million in an off-market deal for a spec-built compound in Bel Air, according to multiple reports. Designed by architect Paul McLean, the 30,000-square-feet estate is hidden behind iron gates and comprises six buildings with a total of eight bedrooms and eleven bathrooms.

The transaction just topped the off-market sale of the Malibu home of entertainment mogul David Geffen, who in May, parted with his long-time home for $85 million. The property has five different structures, including a main house of more than 10,000 square feet, guest houses, a pool, hot tub, reflection pond and multiple balconies and terraces looking out over the Pacific.

Though the sale is currently the record holder for any property sold in Malibu, it has competition hot on its heels. In December, Mansion Global reported that the Malibu home belonging to Kurt Rappaport, co-founder and CEO of Beverly Hills-based Westside Estate Agency, is set to sell for $120 million, according to a source with knowledge of the off-market deal, though according to reports it’s not a done deal yet.

Market Muse | June 9th, 2017

Market Muse with Warren Dow reports:

  • Home prices are on fire – and look to continue to stay hot through balance of 2017
  • The national housing report 63% of homeowners with mortgages have seen a rise equity since 2016
  • Millennials are the largest group of home buyers for the fourth consecutive year.
  • Fannie Mae has declared it’s a sellers market

 

What’s happening in the housing market

Home prices are on fire – and look to continue to stay hot through balance of 2017

According to its recently released Home Price Index (HPI,) CoreLogic reported that home prices are up both year over year and month over month. Nationwide, home prices increased year over year by 6.9% in April 2017 compared to April 2016 and increase month over month by 1.6% in April 2017 compared with March 2017. The CoreLogic HPI Forecast indicates that home prices will increase by 5.1% on a year over year basis from April 2017 to April 2018.

CoreLogic also reported that U.S. homeowners with mortgages (which is roughly 63% of all homeowners) have seen their equity increase by a total of $766.4 billion dollars since the 1st quarter of 2016 – an increase of 11.2%. Today, nearly 9 million borrowers have regained equity since the height of the housing crisis in 2011.

On the other hand, the total number of residential mortgages with negative equity decreased 3% from the 4th quarter of 2016 – to 3.1 million homes or 6.1% of all mortgaged properties. CoreLogic Chief Economist stated, “One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices.”

And there’s more news on mortgages out today – Freddie Mac just released it Primary Mortgage Market Survey, showing the 30-year fixed mortgage dropping for the 4th consecutive week and hitting its lowest level in nearly seven months. 30-year fixed mortgages averaged 3.89% with an average .5-point for the week ending June 8, 2017, down from last week when it averaged 3.94%. For reference, a year ago at this time the 30-year fixed rate mortgage averaged 3.6%.

With the market so hot, one has to wonder what’s happening with home flipping – the practice of buying and then reselling the same property within a 12-month period. Well, ATTOM Data Solutions just released its Q1 2017 US Home Flipping Report, which showed that home flipping fell to the lowest level in two years during the 1st quarter of 2017. Interesting, at the same time, the share of those flips using mortgage financing rose to a 9-year high. The company reported that there were 43,615 single family homes and condos flipped during the 3-month period, down 8% from the previous quarter and 6% from a year ago. Flipping accounted for 6.7% of all single-family home and condo sales during the quarter, an increase from 5.8% in the fourth quarter, but unchanged from a year earlier.

So what’s up with the millennials?

The National Association of Realtors (NAR) just released it 2017 Home Buyer and Seller Generational Trends study, which found that millennials were the largest group of home buyers (34%) for the fourth consecutive year. By comparison, baby boomers were 30% of buyers.

“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year – which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery,” said Lawrence Yun, chief economist at NAR. “There’s a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents – clearly not their idea of the American dream – to begin to look for their own housing units.”

In other housing news, economists at Freddie Mac see the U.S. housing market “on track to eclipse last year as the best in over a decade.” The company’s May Outlook gives credits to the housing market’s strong start to 2017 in part to the surprising downward movement of interest rates since March. After rising to 4.3% in March, mortgage rates have dipped back down near the 4.0% range and have been holding pretty steady. The general sentiment is that the Fed will increase rates a few times before the end of 2017. All told, Freddie Mac thinks 2017 is shaping up to be the best year for housing in over a decade.

Finally, Fannie Mae has declared it’s a sellers market.

Based on Fannie Mae’s monthly National Housing Survey, the net share of Americans who said that now is a good time buy a home reached a record low of 27%, (a decrease of 8%,) while the net share who stated that it is a good time to sell a home reached a record high of 32%, a gain of 6% in May 2017.

Fannie Mae said it was only the 2nd time in the survey’s history that the net share of those saying it’s a good time sell surpassed the net share of those saying it’s a good time to buy. In fact, the “sell” component is 19 point higher that the same time in 2016. All of this makes perfect sense since the market has been on fire and continues to stay hot.

Look for more market muse episodes soon.

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DIGStv | LivingHomes and The First LEED Platinum Home in the World

DIGStv | Episode 16

LivingHomes and The First LEED Platinum Home in the World

DIGStv talks to Steve Glenn, founder and CEO of LivingHomes, a well known eco-friendly company that work with leading architects to create lines of homes that feature modern form and functionality plus an unprecedented level of healthy / sustainability materials and energy systems.

Steve Glenn takes us through the first Leadership in Energy and Environmental Design (LEED) Platinum home in the world, built in 2006 that features green products and appliances from literal floor to ceiling, inside and out.

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Market Muse | Bob Sievers

Bob Sievers and the Manhattan Beach Strand Market

Warren Dow and Bob Sievers former Wall Street hedge fund manager discuss the state of the Manhattan Beach Strand real estate market, now and into the future. Plus we ask Bob Sievers for some tips for Buyers and Sellers from the real estate agent’s perspective, and how they can improve their representation within the market place.

 

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DIGStv | The Birthday House of Redondo Beach

DIGStv | Episode 15

The Birthday House of Redondo Beach

DIGStv with Constance Dunn takes you back into the late when 1800’s a carpenter named Micajah Thomas built his home in Redondo Beach: a two-story Queen Anne Victorian with three bedrooms, a parlor, and all the latest trimmings—from a decorative ceiling in the foyer to a second floor cooling porch flush with lace-web porch supports.

More than a century later, the oldest-standing home in town rests upon a sedate block of S. Francisca Avenue, preserved in impeccable state, all the way down to its original details, including gleaming wood floors and brick parlor fireplace to panes in the windows and crystal cut knobs on raised paneled doors.

“There’s a theory that it might have been built in 1888,” says Horrell, granddaughter of the firm’s founder Kay Horrell. “But there were no city records prior to 1892, so they officially dubbed it, ‘The Birthday House.’” One that is well worth celebration.

DIGStv | Britney Spears’ Home Sells

DIGStv | Market Update

Britney Spears’ Lake Sherwood Estate Sells

Britney Spears sells her Thousand Oaks, CA Mediterranean Estate for $6.995 Million.

Watch the full DIGStv Tour

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DIGStv | Innovation and Comfort at Baran’s 2239

DIGStv | Episode 13

Innovation and Comfort at Baran’s 2239

Read the full article: https://digs.net/innovation-and-comfor…

In this episode of DIGStv we talk to Tyler Gugliotta, Torrance-born head chef of new Hermosa Beach restaurant Baran’s 2239. Tyler cooks us a new dish on their menu and gives us a few tips along the way! Come with us to see a little behind the scenes at Baran’s and what makes their homemade pasta so delicious.

Food Photographer — Lori Hirsch Stokoe

BARAN’ S 2239

502 PACFIC COAST HIGHWAY
HERMOSA BEACH, CA 90254
424.247.8468 | http://www.barans2239.com