Los Angeles Beach Cities Real Estate Market Update Q2 2024
LOW INVENTORY AND HIGH MORTGAGE RATES ARE THE THEMES THIS YEAR
With three months of 2024 sales now in the books, we can start to get a sense of the direction of the housing market as high interest rates persist. This post takes a look specifically at the Los Angeles Beach Cities real estate market as of Q2 in 2024.
ABOUT THE LOS ANGELES BEACH CITIES
Also known as the Los Angeles South Bay Beach Beach Cities, this is Manhattan Beach, Redondo Beach and Hermosa Beach California. These three beach towns are located just south of LAX airport and west of the 405 freeway. Bordered by El Segundo to the north, Hawthorne and Torrance to the east and the Palos Verdes peninsula to the south, the beach cities dominate the coastline south of the city of Los Angeles. (El Segundo does not have direct beach access.)
Homes here are expensive - even by southern California standards, with most properties changing hands over $1M and it not being unusual for homes to sell in the multiple millions. Manhattan Beach and Hermosa Beach are typically some of the priciest in any zip code in the United States.
BEACH CITIES MARKET SNAPSHOT
While some properties are getting multiple offers and bid up over the MLS asking price, others linger on the market for weeks and may take (multiple) price reductions and longer time to sell. But, in general, inventory is low and there are have not been enough homes for sale to meet the buyer demand. The key to a successful sale for sellers is pricing right and making the property as presentable as possible. For buyers, arming yourself with real data and knowing the market is the best strategy.
Q1 2024 SALES IN THE BEACH CITIES COMPARED TO Q4 2023 and Q1 2023
Manhattan Beach and Hermosa Beach sales were each stronger than in Q1 2024 than either the previous quarter or the same quarter in the previous year. This reflects the adjustment that was as buyers have realized that rates are not substantially coming down anytime soon.
Redondo Beach is flat year over year but down from Q4 2023. The short explanation for that is there was a lot of inventory at desirable price points and buyers jumped in heavily when rates dipped at the end of 2023.
HOW ABOUT YEAR OVER YEAR PRICES?
MANHATTAN BEACH
MEDIAN PRICE Q1 2023 $2,800,000
MEDIAN PRICE Q1 2024 $2,450,000
HERMOSA BEACH
MEDIAN PRICE Q1 2023 $1,851,000
MEDIAN PRICE Q1 2024 $2,035,000
REDONDO BEACH
MEDIAN PRICE Q1 2023 $1,625.000
MEDIAN PRICE Q1 2024 $1,580,000
Before you jump to the conclusion that prices are coming down in Manhattan Beach and Redondo Beach, the results are skewed by the product mix of available homes. In other words, if lower priced homes are available, it pulls the numbers down. Or maybe its that the lower priced homes are the ones that sell.
Let’s get under the numbers some more.
MANHATTAN BEACH Q1 2024 DEEP DIVE
There were 60 sales in Manhattan Beach reported through the multiple listing service (MLS) during January-March of 2024. By month that broke down to:
January 12
February 19
March 29
During this period 45 Single Family Residences (houses) were sold, 13 townhomes and condos and 2 duplexes.
Here’s the breakdown by MLS area.
OTHER MANHATTAN BEACH DATA POINTS
45 listings sold for less than the asking price, 7 sold over the list price and 8 exactly at the asking price. That indicates that either a) sellers or their agents are overvaluing properties, or b) buyers have the advantage right now, or both could be true.
The lowest priced sale was $1,025,000 for a 2 bedroom 881 Sq Ft condo in the Sand Section. The highest price was $7,550,000 for a 5400 SFR in the Tree section.
The median days on market was 18 days and all 7 of the properties that sold for over the list price sold in 18 days or less. But also in the first 18 days, 17 homes sold for lower than the list price.
New construction accounted for 8 of the sales.
Here’ some useful Manhattan Beach links:
How much is your Manhattan Beach home worth?
HERMOSA BEACH Q1 2024 DEEP DIVE
There were 32 sales in Hermosa Beach reported through the multiple listing service (MLS) during January-March of 2023. By month that broke down to:
January 10
February 10
March 12
During this period 19 Single Family Residences (houses) were sold, 12 townhomes and condos and 1 triplex.
Here’s the breakdown by MLS area.
OTHER HERMOSA BEACH DATA POINTS
21 listings sold for less than the asking price, 7 sold over the list price and 4 exactly at the asking price.
The lowest priced sale was $600,000 for a 1 bedroom 740 Sq Ft condo in East Hermosa Beach. The highest price was $5,900,000 for a 3924 Sq Ft SFR in the Sand Section.
The median days on market was 39 days and 7 of the properties that sold for over the list price sold in 33 days or less.
New construction accounted for 2 of the sales.
Here’ some useful Hermosa Beach links:
How much is your Hermosa beach home worth?
REDONDO BEACH Q1 2024 DEEP DIVE
There were 94 sales in Redondo Beach reported through the multiple listing service (MLS) during January-March of 2024. By month that broke down to:
January 26
February 38
March 30
During this period 37 Single Family Residences (houses) were sold, 56 townhomes and condos and 1 triplex.
Here’s the breakdown by MLS area.
OTHER REDONDO BEACH DATA POINTS
45 listings sold for less than the asking price, 40 sold over the list price and 9 exactly at the asking price. That indicates that there is balance in the market and that a) sellers are willing to cut prices to get sales done if the demand is not there at the listed price and b) buyers will pay the list price or higher if they perceive value.
The lowest priced sale (not including senior housing) was $660,000 for a 1 bedroom 669 Sq Ft condo in Brookside Village. The highest price was $3,775,000 for a 3180 SFR in the Hollywood Riviera.
The median days on market was 11 days. New construction accounted for only 6 of the sales but expect that to go up by the next market update at the beginning of Q3.
Here’ some useful Redondo Beach links:
North Redondo Beach 90278 Recent Sales
South Redondo Beach 90277 Recent Sales