Friday, August 15, 2008

South Bay-Beach Cities: Where are the Luxury Homes..

Luxury home for sale in Palos Verdes

In the current market the emphasis is on falling prices and the demise of real estate as something of value. Every day consumers are bombarded with bad news about the huge numbers of foreclosures...real and potential ... along with banks that are going under or will soon go under. Everyday there is a new sound byte or headline that redefines the concept of affordable homes. The assumption by one and all is that price is the only consideration but that isn't always true.

At the opposite of the real estate price scale are is the Luxury home market. Wikipedia has a great definition for Luxury real estate. They note that luxury real estate can have many definitions depending on the country where you live. I found it interesting that one of the examples they use points out that a small waterfront property could be worth far more than a huge home in another location... but then we knew that.

A luxury home is usually defined as one that has a premium location, usually with great views. It may or may not be located on a large amount of land. The home can be large or on the small side depending on the location. Luxury homes have top of the line appointments that may be custom designed for that particular property. A luxury home can be a single family home, a townhome or a condominium... just ask Candy Spelling. Luxury homes are priced at a premium over other properties in the area.

Luxury homes are usually custom built for a specific client. In our market there are probably more luxury spec homes then are found in other parts of the country. We have a number of very nice and rather expensive homes in the Beach Cities and on the Palos Verdes Peninsula but the luxury home market in the South Bay-Beach Cities is small. In the South Bay the luxury homes market is in Manhattan Beach, Hermosa Beach, South Redondo and the Palos Verdes. Prices and definitions of a luxury home will change depending on the city. In South Redondo the luxury homes are townhomes along the Esplanade priced over $3,500,000. In Palos Verdes and Manhattan Beach the price point is $6.5 million and up while in Hermosa it is $6 million plus.

South Bay Luxury Homes:

Manhattan Beach: $6,500,000+
( Single Family homes)

Active listings: 4

Pending sales: 1

Sold ( Jan. 2008+) 1

Hermosa Beach: $6,000,000
(Single Family Homes)

Active Listings: 5

Pending sales: 1

Sold:(Jan. 2008+) 3

South Redondo: $3,500,000

Active: 5

Pending Sales: 2

Sold:(Jan. 2008+) 0

Palos Verdes Peninsula: $7,000,000
(Single Family Homes)

Active: 11

Pending Sales: 0

Sold: 2

The above numbers only reflect those properties that are listed and sold through the MLS. There are a number of Luxury homes that are built each year by private parties that are not reflected in these numbers. Although the luxury home market in the South Bay is small it does have an effect on values on adjacent homes. Anyone want to venture a guess as to the ultimate value of the home currently under construction on 3 full Strand lots in Manhattan Beach ... and how it will affect values of other Manhattan Beach Strand homes? I'm guessing values will not be going down.


Property Brazil said...


These luxury houses are so expensive but there are available facilities are also luxuries.

Kaye Thomas said...

Property Brazil,
In the luxury home market you really do get what you pay for..