Highest Priced MLS Listings in North Redondo Beach

Contemporary Remodeled House North Redondo Beach CA
Recently I have been marveling at the fact that there are a number of $1M plus listings and sales in North Redondo Beach. My specific quote is something to the effect of "We never used to have one million and North Redondo in the same sentence".  Well as I'll discuss below, that's somewhat of a misstatement but you know what I mean. Historically when most buyers think of North Redondo Beach Real Estate their price point has been $600,000-$8,000,000. These days that range is more like $700,000-$900,000 meaning that at $900K I start to get the (psychological) pushback even if the buyers are approved for a higher amount.*

Last year I sold 2117 Huntington Lane Unit A for $1,079,000 and that was a new high for an attached front unit townhouse. Or at least a new high at the time because we are routinely seeing new and resale detached townhouse listed and selling anywhere between $1-1.2M. And these days in Golden Hills, $1M is almost a bargain. But all that may be about to change with prices ratcheting up yet again.

If the listing at 1913 Gates Avenue (above) sells at anywhere close to the asking price of $2,200,000 we may see an absolute explosion in home values in 90278. There has never been a SFR sold on 90278 over $2M. In fact the previous high was $1,670,000 in 2007 right at the height of the bubble preceding the collapse. This cycle, the highest closing was $1,576,475 at the end of April (pictured below).

SFR sold on Graham in North Redondo Beach CA
So why is Gates priced so much higher than Graham and is it worth it? The house on Graham has 4 bedrooms and is 3792 sq ft on a 5180 sq ft lot. Gates is 2891 sq ft on a 6745 sq ft lot and one block further west. Gates was built in 1994 and has been extensively remodeled. Graham built in 1990, updated and showed well.

The major difference though is that Gates has been remodeled in a super hip contemporary style that many people (including me) prefer to the typical South Bay product. Rather than me making a feeble attempt to describe it just take a look at the pictures below.

 A few thoughts.

  • There is definitely a market where a) the buyer will pay more for this style and b) turnkey sells and you can move into this one.
  • If this home were in Hermosa Beach, Manhattan Beach or even South Redondo Beach it would be arguably underpriced or even a great deal.
  • Will the market support a premium of over 20% higher in just one leap? 

The last point is the wild card and remains to be seen. I'll be watching this one very closely.

Final thought. Everything above makes this sale at 1203 Goodman which closed in April seem like a steal by comparison. New construction, 5 bedrooms, 3162 sq ft. Wow.

New Construction SFR North Redondo Beach CA 90278
It all makes you think......

* if you are not familiar with Redondo Beach, properties in South Redondo Beach, 90277, typically sell for substantially more than North Redondo Beach and there are far more homes for sale in South Redondo over $1M and $2M than in North Redondo Beach. If you are interested in buying or selling a home in the Beach Cities feel free to contact me directly for more information.