Hermosa Beach was the site of the most expensive sale in the beach cities last year when 2909 The Strand closed in March. That 7-bedroom, 10-bath, 9884 sq ft home on an extra-large 6596 sq ft lot (with 59 feet of beach frontage) finally came in, after over 2 years on the market, at $12,513,962, or about a 50% drop from its initial asking price of $25 million back in 2010.
Still, that sale stood head and shoulders above the highest sale in Manhattan Beach last year, 1712 The Strand, which came in at $10,500,000 just a few weeks prior to 2909 The Strand’s closing.
As for townhome/condo prices, the 2012 Hermosa Beach median sale price of $765,000 was down by 5.9% from the prior year, the 2nd worse performance of the beach cities we surveyed (again, surpassed only by Manhattan Beach’s -6.5% decline).
Residential sales in Hermosa were up last year by 38%, from 162 to 223. However, of those 223 sales (123 single family, 100 condos and townhomes), 30 qualify as distress sales with 12 bank-owned properties and 18 short sales. That’s 13% of total sales, clearly an impediment to home prices.
Still, there is good reason to be optimistic about Hermosa’s home prices in 2013. As of the date of this post, there are only 17 single family homes available in Hermosa, the lowest inventory in 5 years, except for last November when inventory briefly dipped to 16.
And the current inventory includes the brand new home now under construction at 2666 The Strand listed for $14,250,000 (if the developer gets close to that figure, it would set a new Hermosa home price record).
The inventory of condos and townhomes is even more paltry at 14. With demand far exceeding supply at this point, look for the median price for this market segment to jump up in 2013.