How Much is an Ocean View Worth?

Request come in all the time for homes with ocean views. Granted few thing are more enjoyable than seeing the sunset over the Pacific Ocean from your living room.  Add to that, unobstructed, cool ocean breezes that justify the lack of air conditioning, and you have a dilemma on your hands. Just how much is an ocean view worth?

Here in the Hermosa Surf a unit for sale is challenging that question.  Unit 501 is a 1 bedroom 1 bath top floor ocean view condo, that originally listed at an aggressive $579,000. Keep in mind other single bedroom units in this complex have sold between $409-$459000 in recent months.   After some thought, price reduced to $539,000 without success.  Now, 103 days later the asking price is now a reasonable $499,000.  Will it sell at this price? I think so, however the unit does need updates to fit the more modern buyer.  Still this unit is more affordable than similar units in the neighboring Commodore and Apple Tree complexes. 

This home can be viewed by clicking here

 

A New Year with Old Listings

The new year is in full swing with listings from last year. The current inventory of active listings show the Hermosa Surf with 1 condo for sale, the Commodore with 3 condos for sale, with the Victorian and Appletree Condominiums at zero.

The bank owned, 2 bedroom, 2 bath unit in the Hermosa Surf took a price reduction from $579,500 down to $549,900. As suspected the original price of $579,500 was unattainable. This previous foreclosure remains as the most updated unit after receiving an overhaul over the past few months.

The condos for sale in the recently painted Commodore are finding their days on the market increasing with no end in site. These units, ranging from 1 to 2 bedrooms have not reduced their asking price leaving some wiggle room for potential buyers.

Condos for sale in the Commodore include;
Unit #202 1 bed 1 bath $459,500
Unit #319 2 bed 1 bath $479,000
Unit #310 2 bed 2 bath $570,000

As always, these homes can be seen on www.RealtorRichie.com

Continued market changes in Hermosa Beach? Plus information about the foreclosed condo in the Hermosa Surf

Well it seems another condominium from the Commodore dropped out of the race for now. Unit 319 has decided to give it a rest during the traditionally slow holiday season. We are sure to see this one back up for sale shortly. No word yet if the 2 condos (unit 118 and 325) from the Appletree will rejoin the race sometime in January.

The previously foreclosed condo in the Hermosa Surf is now up for grabs to the delight of its neighbors. This REO on 1707 Pacific Coast Highway #304 under went a massive face lift. With spa tubs, new wall heaters, a new kitchen and bath with the usual granite countertops, this condo is practically brand new. If sold at the listed price of $579,500, this 2 bedroom 2 bathroom condo will rank as the second highest priced condo sold in the Hermosa Surf. The bank is on the hook at just over $500,000 plus the cost of its remodel, so while you may be able to negotiate a deal, don’t get too carried away.

The Commodore, located on 1600 Ardmore in Hermosa Beach recently received fresh paint to hide the old white with green trim. The new colors of beige and olive provide a subtle but welcomed change. Just in time to hopefully benefit from the upgrade are two units that recently hit the market. The first is unit 310, a 2 bedroom with 2 bath condo that will need to be upgraded according to your taste, but certainly in move in condition. Asking price is $579,000. The other unit for sale is #202. Priced at $459,500, this one bedroom corner unit is adequately priced when compared to recent sales. With the state of the current market, both units will entertain all offers. Who knows they might bite.

www.RealtorRichie.com

Troubling times ahead for the Hermosa Beach condo market?

Could we possibly be seeing the start of some very tough times for the condo market in Hermosa Beach? Two nicely updated condos, one in the Appletree and the other in the Commodore have been taken off the market recently. The Victorian, only ½ a mile away has also seen two condos taken off the market without a sale. Currently there are two condos in the Commodore for sale and one is approaching 100 days on market.

It has always been my stance that the housing woes affecting California and the rest of the country are less prevalent here in the beach cities. Yes, we do have foreclosures, but far less than what you see in the rest of the country. Many buyers in the beach cities and other parts of the South Bay did not sign those risky mortgages or 100% financed loans. In addition the beach cities remain a highly desirable area to live, therefore maintaining their value.

According to Trendgraphix (Trendgraphix.com), which helps analyze real estate trends. Condos have been selling at about 95-99% of the asking price over the past year. This tells us that we are not seeing great discounts in the Hermosa Beach condo market. The number of condos for sale in a given month average 4, so supply remains low. One immeasurable statistic concerns the seller’s motivation and I have seen that the Hermosa Beach condo owner would rather hold on to their condo than go through a substantial price reduction in order to sell it.

With the holiday season in full swing expect sales to slow further. Yet some buyers will find these next few weeks ideal since there will be less competition out there.

Many have asked about the foreclosed home in the Hermosa Surf that is now bank owned. That unit received a face lift and will hit the market soon. Stay tuned for details.

www.RealtorRichie.com

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Two updated condos currently for sale in the Appletree complex

An ocean view condo in the Appletree complex just listed and offers a nice comparison to the existing condo for sale. Unit #325, priced at $529,000, shows tasteful upgrades throughout this condo. With granite countertops, new cabinets, and an updated bath, this one bedroom one bath condo needs no further work. Situated at the back of the Appletree, the ocean views require that you look over the buildings in front. This may not be ideal, but only a few condos in the Appletree, Commodore, or Hermosa Surf can claim that. Ocean breezes will surely make its way into this unit.

The other unit for sale #118, is also updated but does not have new appliances and since it is on the first floor offers no views and no direct ocean breeze. Priced at $515,000 it is priced correctly based on previous sales. With the last one bedroom selling at $530,000, both units for sale seem like better buys because they are both upgraded to the point where little or no work is needed.

Now if you are one those who think the housing market’s sky will be falling, you will probably find these homes overpriced. As someone who watches this condo market closely, I can tell you that somebody will buy these condos for close to asking price. Stay tuned and I’ll keep you updated.

The Appletree is located on 1720 Ardmore, Hermosa Beach, CA 90254

www.RealtorRichie.com

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Condo Sale Update

Two condo units currently find themselves for sale. One sits in the Appletree complex while the other in the Commodore. The Appletree is located next to the popular jogging greenbelt on 1720 Ardmore in Hermosa Beach. The condo here is a one bedroom one bath unit, at just under 700 square feet. Price listed is $515,000. This remodeled unit shows well, but can use new appliances. Most people will generally be happy with its appearance, especially the hardwood floors. At $515,000 this one bedroom unit is higher than the 1 bedroom unit in the Hermosa Surf that went into escrow today. That particular unit was asking $440,000. The Appletree unit is certainly a better show and does not have the noise that the condo in the Hermosa Surf is subjected to.

Over at the Commodore is a 2 bedroom, one bath unit at 710 square feet. While this unit is also clean and presentable it boosts less luxury as the Appletree condo. Listed at $479,000, this unit may be a better buy especially for those who feel there will be a market shift here in the Beach cities. The Commodore is located 1600 Ardmore right next door to the Appletree.

We have recently noticed lessening numbers of units for sale from these three complexes than in the past. Owners not knowing how the market will shift have decided to hold and stay. This will certainly put a damper on those wanting to move into Hermosa Beach at an entry level price. This should bode well for property values as the scarce supply of entry level condos forces values to maintain, at least for now.

As always, these homes can be seen on www.RealtorRichie.com

Information, Opinions and Thoughts about the Victorian Condos in Hermosa Beach

 Wow, there are currently no condos for sale in the Hermosa Surf, Apple Tree, or Commodore complexes. The one remaining comparable condo for sale finds itself at the newly updated Victorian on 2411 Prospect Ave, Hermosa Beach.

Arguably the most pet friendly of all the condos in its price range, it sits east of Pacific Coast Highway, thus furthest from the beach. Considered by some the least desirable location of all the condos, still others find that the cleaner look and more reasonable prices warrant a consideration. Some further argue that the colonial style Victorian utilizes better floor plans, with larger kitchens and distinct master bedrooms. The dining areas generally lack size, but many, including myself, believe it is the least used room anyway. Balconies are on the smaller size, similar to the Commodore but still useable.
The usual swimming pool with nearby BBQ grills are its main amenities.

The 64 unit Victorian has its own shops and eateries within walking distance. While they may not be social hotspots unlike those along Pier Ave, if you want coffee or a quick bite to eat, they are just a hop, skip away.

The highest recorded two bedroom sale was $505,000 and $386,000 for a one bedroom. At over $100,000 less than the highest recorded sale at the Apple Tree, Hermosa Surf, or Commodore, the Victorian provides a more cost effective alternative. Just how close to the beach do you need to be anyway? Hermosa Beach isn’t much larger than a 1.3 square miles.

visit www.RealtorRichie.com to see this home.

Stories From a House Warming

Last week I attended a client’s house warming in San Pedro. As an older lady, very charming and a hoot to be around, she maintains an active lifestyle that many would envy. Her many friends welcomed me as if they too had known me for years. Two particular long-time San Pedro residents Manny and Kitty, conversed in great detail their lives spent in San Pedro. Stories about the past businesses that ran along Gaffey and near the docks, enlightened me on how much history a city possesses. They described the days when Western blvd was just a dirt road and how everything just boomed into the San Pedro of today. Manny could recall many business that existed in San Pedro, while Kitty described the sights and sounds she encountered during her daily walks, even recalling seeing Manny hard at work everyday. While they both eventually married other people, it was fascinating to realize that after all these years a community can still stay together. Every other person at the house warming knew another that still lived in the community. They even remembered when the house we celebrated in was built and described the family that built it.

As a realtor, change is what drives our business. Progress occurs, houses are constantly torn down then rebuilt, and families come and go. Here, in this older house in an established part of San Pedro, change has brought a community closer. They lived in a period of time before these new styled homes found their way over here, before builders discovered you can add square footage by building towards the sky. They celebrated an achievement that many of us would not dare to do in our older age and they preferred to do it in an older home. The one thing an older home has that newer homes don’t is a large yard to hold summer BBQ’s parties.

Hearing past memories beats any old photograph and when I left that night I had a better fondness for San Pedro. I wish these memories can be placed on a hard drive for future generations to hear. Hmmm might be a future project there. So far my only contribution to history is my attempt at refurbishing my ’68 Camaro.

At least I now have a sponsor at the Elk Club.

www.RealtorRichie.com

Need a Reason to Visit? International Surf Festival in Town, Plus Parking Information

Its funny how a weather shift of a few degrees can affect my comfort zone.  5-7 degrees in either direction is the difference between short and jeans these days.  Oh I know, I’m spoiled by the great climate here in Hermosa Beach.  Where else but sunny California can someone complain that 7 degrees higher or lower makes it too warm or too chilly. I think I forgot how it was being in Detroit or Las Vegas. Well its currently 76 degrees with a slight ocean breeze, I guess it shorts from now until 6pm. BBRRRR!

The International Surf Festival arrives this weekend with a complete array of beach activities.  Beginning 7pm on Friday August 3 until Sunday August 5, various competitions will occur all along the beaches of Torrance, Redondo, Hermosa Beach, and Manhattan Beach.  Visit http://surffestival.org/ for times and information.  Attractions include beach volleyball, surfing, and lifeguard events. I suggest parking in Hermosa Beach or Manhattan Beach depending on your event of choice, then walking over to the neighboring beaches for the other events.  Parking disappears quickly, so here are a few suggestions to place your vehicle.

In Hermosa Beach, a parking structure stands just north of Pier Ave at 14th Ct and Hermosa Ave, while a parking lot sits south of Pier Ave at Hermosa and 11th St.  Needless to say, they fill quickly.  A lesser known spot is at 14th and Manhattan Ave, however there aren’t many spaces.  Try the parking lot behind the Coffee Bean as well.  The entrance for this is at 14^th St.  Follow the road and it will take you around the parking structure and onto the parking lot.  This is also an alternative way to get into the parking structure on 14^th Ct. and Hermosa when they block off entry from the front.  Further east, but still west of Pacific Coast Hwy more options pop up.  At Ardmore and Pier Ave, meters find themselves near the skate park and tennis courts.  16th and Ardmore has 2  parking structures, one across from the Commodore complex and the other just north of the complex where the 24 hour fitness is located.  Both these structures are for the corresponding businesses, but as long as you pay, you can park there.  Some hidden areas known to locals are along Valley Blvd between 8th and 11th street.  On weekends you can park in the employee section of City Hall and in the front row of the Public Storage.  Please read all signs carefully.  Herondo St (HERmosa + RedONDO how clever) has ample room for those willing to walk further.

Manhattan Beach boosts larger parking structures.  Main structures are to the left and right of Morningside Dr at 12th St.  The west side has a tall parking structure, while underground parking is on the east side.  There is also parking to the left and right of Manhattan Beach Blvd right at the sand area, but they fill quickly.  Spots are also found between Ardmore and Valley to the north and south of Manhattan Beach Blvd.  If you are headed north the parking entrance is on the left side along Ardmore.  If you are headed south the entrance is on the left along Valley.  There are also little metered spots scattered about, but the spaces are so limited its not worth mentioning. 

In either city, park at your own risk and read signs carefully.  Parking enforcement will no doubt be in full force ready to enforce the rules.

www.RealtorRichie.com

Can You Make a Profitable Condo Flip in Hermosa Beach?

So the question asked of me by some of you is, can a condo flip in Hermosa Beach prove profitable?

Clearly yes if, and it’s a big “IF”, you obtain the condo at the right price. Before we look at the numbers, here are a couple of reasons why a condo flip seems attractive.

Condos are generally smaller, thus requiring less materials, time, labor and ultimately money. Also with smaller spaces, anything that makes the unit seems larger or more open, suddenly differentiates you from the other units. Demolishing walls or making pass throughs make dramatic changes to the feel or comfort of any home. Explore all possibilities to open up a condo. In the Hermosa Surf for example, most units have a wall at the entry that separates the hallway from the dining room. Upon entering, all you see are two sunlight obstructing walls. Opening this wall allows a full view of the condo therefore affecting the feel of the home.

Some drawbacks with condos include an inability to increase square footage, or adding rooms or baths. This does however make decisions simpler when it comes to deciding what to upgrade. Essentially, improve the bathrooms and the kitchen. Work with what you have and make it better. Another drawback is the lack of control that you have over the exterior of the unit. Curb appeal is important, but with so many other home owners, implementing dramatic changes often proves difficult.

Now let us take a look at the possibility of obtaining a condo in Hermosa Beach at a low enough price to allow profit. Over the last year and a half, the highest priced 2 bedroom 2 bath condo sold at around $580,000. During this same time period the least expensive 2 bedroom 2 bathroom comparable sold at $480,000. Let’s use this home for our flip example. It probably cost the seller $10,000 in escrow fees to purchase this $480,000 condo. Let’s also say that it will cost $20,000 to upgrade this condo. Your total investment will now be $510,000. If this condo sells for $580,000, after realtor fees and escrow cost which will total about $35-40,000, you end with a $30-35,000 profit. Now this estimate assumes many things. One is that people will see this flipped unit as being in the same desirable location as the highest priced condo. Secondly, carrying costs such as mortgages and interest on other money borrowed will not exceed one month’s time. Lastly, this assumes that the market is stable. Do not expect to sell your flip for more than the highest priced recorded sale or you will guarantee longer marketing times.

For some this profit margin seems too risky. Now think about it, you have no room for error. Increased market time or an underestimation of costs will quickly eat away your profit. As you can see though, the numbers can add up in your favor. Tread carefully and make sure you know what you are doing.

www.RealtorRichie.com