Are Home Prices in El Nido Poised to Take Off?

I've been thinking for a while now that home owners in the Redondo Beach "El Nido" neighborhood may start to see their home values appreciate faster than Redondo Beach in general. Before I get into "why" here's some background information for those not familiar with El Nido.

The area is name after El Nido Park located on the eastern side of Inglewood Ave past the railroad tracks. In Realtor speak, it is MLS Area 153. For everyone else here's the borders: south 190th St to where it intersects Ripley; follow Ripley to the Galleria Mall; eastern border Torrance. Some of the homes east of the railroad tracks are in the Torrance School system and have Torrance services although they have Redondo Beach mailing address. (More on that later.)

While there aren't as many homes in this neighborhood as in other 90278 neighborhoods, they are mostly Single Family Residences (SFRs) on good size lots and many are the 3 bedroom, 2 bath that everyone seems to be looking for. And surprisingly these 3/2/ houses have been priced lower, yes that's lower, not a misprint, than similar properties just south of 190th in Torrance. So that gets me to thinking, we have an inversion of pricing going on that will undergo a correction at some point. I think.

While the 3/2s and 2/1s tend to be older original homes, some with additions, we've also seen quite a bit of newer construction happen over the years including right up to around 2008 or so when, well you know what happened. I think we may see that trend continue now that the market has nicely rebounded. Here's some examples of recent sales followed by some current listings and other market activity.


CURRENTLY ACTIVE EL NIDO HOME LISTINGS 

2504 Spreckels Lane is one of the highest priced listings in North Redondo Beach right now at $1,300,000. But for a 3441 sq ft 6 bedroom, 4 bathroom SFR built in 2006 on a 5250 sq ft lot, this is a great deal compared to what you would find anywhere else in the South Bay. It is conveniently located near freeways, restaurants, food shopping, malls, and just 10 minutes to the beach straight down 190th to "the wall" in Hermosa Beach.

As you would expect in (relatively) new construction, the kitchen features granite countertops, stainless steel Viking appliances and an island. There are high end upgrades throughout with the usual travertine and marble flooring in key areas. One of the 6 bedrooms is located downstairs which comes in handy these days with extended family members. If you take this same house and put it in East Manhattan Beach, about $2.5M.

513 Cluster Lane is your classic 3 bedroom 2 bath SFR house except that it sits on an almost 9000 sq ft lot. Well 8994 to be exact. But to be fair, a few thousand sq ft of the lot is up the side of a hill so not entirely useful. This approximately 1500 sq ft house sits on a quiet street located just north of 190th and south of Ripley. It needs a good deal of updating but priced at $860,000 it is less expensive than a Tall & Skinny in the Golden Hills and with a lot more land and all on one level.

In a similar vein, 2211 Glick Ct is listed for $849,000. Also 3 bedrooms, 2 baths, 1455 sq ft on a flatter 5593 sq ft lot. Similarly situated between 190th and Ripley.

Both homes need updates but as the saying goes have "good bones".



EL NIDO SFR RECENT SALES