|Golden Hills New Construction being Built|
Whether it is a car, house or any other high ticket item, let's face it, everyone loves new even if they don't like the price. As far as houses go, there's just nothing like that new wood, fresh paint, new carpet everything brand spanking clean feeling.
If you've been out and about in North Redondo Beach lately you can't help but notice all the new construction going on that will presumably hit the market sometime Q1 2016 just in time for the Spring selling season. Well actually with this continuing low inventory it is always selling season.
I always track new construction because it sets the price standard for everything else as presumably all things being equal *which they never are) no one would pay more for a resale property than a similar new one unless the resale had some feature, for example view, that the new construction was lacking.
Most of the new construction activity right now is in 2 on a lots and Golden Hills SFRs. I'm hearing from the builders that R3 lots used for 3 on a lot town homes are drying up or hard to come by leaving us with two on a lots and SFRs.
During 2015 there have been 38 closed sales of new homes in 90278 with the preponderance of those being detached 2 on a lots. There are 3 active listings and 4 in escrow. So new represent less than 10% of the market. But an important 10% for the reason referenced above.
So how much will it cost you to buy "new" in North Redondo Beach CA?
Let's start with SFRS.
There were 7 SFR sales with 5 of those being Tall and Skinnies in Golden Hills. Prices ranged from $1,350,000 up to $1,429,000. The home that sold at the top price was very large, 2520 SqFt per the builder, and on an over size 2875 SqFt lot on Reed with no one behind. At $567 SqFt for BRAND NEW, I think that was a very good deal.
Bear in mind the typical Tall and Skinny has been a 3/2.5 at around 1900 SqFt on two levels. The new construction is larger - all these houses were over 2200 SqFt and some had 4 bedrooms. Additionally the new homes have 3rd floor lofts, walk out roof decks and/or contemporary modern styling (see below).
|Listed by Amir Amiri Merit Real Estate|
The other two SFRs sold were traditional floor plan homes that were five bedrooms and over 3000 SqFt on larger 5000+ SqFt lots. The one below on Goodman sold for $1.5M and I think it was a steal. It actually sold before it was listed in the MLS. (Hint, call me if you want to find out about the approximately 30+ properties I know being built right now in the South Bay.)
|Santa Barbara Style in Redondo Beach CA|
The contemporary trend continued with the 3 on a lot projects. There was one, comprised of two adjacent 3 unit buildings on Rockefeller that I thought was really stunning. Those units sold for between $844K up to $897K. Yes, you read that correctly, almost $900K for an attached 3 on a lot townhouse. Well it was a very nice attached 3 on a lot. Almost 2000 SqFt and 4 bedrooms.
|Contemporary 3 on a lot Townhomes|
There was also a very nice 3 unit building on Grant that I think sold for under market because of the proximity of the power poles. But new sells and those went for between $795K and $844K. There are 2 projects being built now that I know of and I'm predicting they will find buyers in the very high $8's and possibly low nines.
Leaving us with new construction detached 2 on a lots of which there were 20 sold. If you are planning on buying a newly built detached 2 on a lot in 2016 plan on budgeting around $1.2-$1.250M. Sales in 2015 ranged between $11M up to $1.2M. Builders may be pricing these higher but I have seen discounting - particularly on the new Merit Real Estate listings from Amir Amiri.
Last thought on this topic, at least for 2015. It's nice to see some of the builders get outside of the traditional cookie cutter and try some different styles. Most of the modern and contemporary I've seen done has missed the mark. and a few have been great. On the other side of the coin I'm seeing a mashup of finish work that is already dated by the time it is installed (super dark cabinets) or just bad design cues. So keep trying, don't cut corners and how about some Plantation Style like we are seeing in Manhattan Beach and Hermosa Beach?