About Hermosa Beach's Hermosa Sand

South Bay Homes Pricing Strategies

I find it very intriguing that there are many listings in the South Bay real estate market that are clearly priced well above current market rates. This has been the subject of many blogs on AR and yet it still fascinates me how frequently it occurs. In the South Bay region of Los Angeles, the median sales prices of 2009 were fairly consistent with late 2004. This has been pretty well documented locally and the market consistently reaffirms this point. Nonetheless, there are numerous examples of listings currently on the market at 2007 pricing when most sub-areas here hit the mountaintop. Many of these homes have already had downward adjustments and may have second or third rounds of corrections.

A case in point is the strand, home to all the beachfront properties in Manhattan Beach and Hermosa Beach. There are currently ten homes listed for sale on the strand and five of them are priced at over $10,000,000. Considering what has been happening with the financial markets and the fact that only one home has sold on the strand for $10,000,000 or more this entire past decade, it seems quite unrealistic to think that there is now a market at this price point.

So I am left wondering, is it possible to will a market to recovery? For that matter, is it possible to create a demand when one hasn't really existed there before and at a time when securing high end financing is challenging at best?

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For those home buyers out there looking not only for a stunning ocean front home, but for the chance to live the life of the rich and famous, your home has arrived. The home is located at 3500 The Strand in Hermosa Beach and it's known in the area as the "90210" house. How the girls of Beverly Hills 90210 (the original not the recent) afforded a Strand home is certainly a mystery but this home was featured on many of their summer episodes with the cast living the good life on the beach. The home itself is actually on a very unique corner lot in which the bike path, or Strand, juts out in the transition from Manhattan Beach to Hermosa Beach offering unblocked views in multiple directions. As mentioned the address is 3500 The Strand and the home is actually two 2 bedroom 2 bath homes with an additional 2 bed/1 bath guest suite. Square footage is approximately 2,868 square feet and sits on a 3,670 oversized lot and is listed with Bryn Stroyke of Vintage Properties.

The home truly is ideally located with some of the largest beach frontage in all of the South Bay. The current list price is $10,500,000 and can only be shown with an appointment. Click here to view all of the current oceanfront Strand homes in Hermosa and Manhattan Beach

Keith Kyle is a licensed Realtor and e-Pro with South Bay Brokers in Manhattan Beach. He serves his clients throughout the South Bay and his websites KeithKyleHomes.com and FindYourSouthBayHome.com offer the most comprehensive real estate websites in the South Bay with free MLS access, current home listings, open houses, recent home sales information and more. Keith can be reached at 310-251-2344 or by email at info@KeithKyleHomes.com. For more information on the South Bay, visit my Beach Cities Real Estate blog.

Hermosa Beach Strand Home Sales

I recently moved from the Strand in Hermosa Beach after more than 11 great years there. The views and beach access are unparalleled and it is, quite possibly, one of the easiest places to meet new people. All you would need to do is sit on your patio on any given day and invariably, someone will stop by and say hi or ask you a question about beach-living. For some people, this kind of access is fantastic. For others, the perceived lack of privacy can be menacing. This past weekend, a long time neighbor and friend put his landmark home up on the market after 10 years there. It is often referred to as the 90210 beach house. It is one of a number of high profile homes currently listed for sale on the Hermosa Beach Strand.

Over 50 homes have been sold on the Hermosa Strand this past decade. Less than a third of them were new when they were sold. Back in 2000, the median sales price for the four homes sold here that year was about $2 M. The least expensive home was under $1.5 M. The most expensive at that time was just under $2.4 M. It would be an understatement to say that times have changed at the beach. In the last couple of years, there have been nine sales. The lowest price home went for $3.8 M. On the other end of the continuum was a sale for $10.6 M. Currently, there are six homes for sale and three of them are listed at over $10 M.

This last figure prompted this writing. If you are reading this, chances are good that you are a sophisticated investor. You may very well know many people in the finance industry proclaiming that money is much harder to come by these days, especially after the credit market crash of 2007. Three homes for sale on the Strand are listed at over $10 M, two of them are over $14 M. This at a time when money may be harder to secure for these types of purchases.

This is particularly interesting when put into a broader context. There have only been seven homes sold for over $10 M in the entire South Bay this entire past decade. Only seven (there may be some private sales that never hit the MLS in that time). The current inventory stands at 10 of these super luxury homes. It might be suggested that the inventory would take more than 10 years to be sold off.

One never knows how these things will really go, but I confess I would be surprised if all three of these $10 M plus Strand listings are sold this year at or near their current listing price.

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Hermosa Beach will be the site of the 37th Annual Fiesta Hermosa this Labor Day weekend. Running daily from 10:00 a.m. to 6:00 p.m., Saturday through Monday, Labor Day, the summer vibe officially comes to a head in the South Bay. Fiesta Hermosa, known as Southern California's largest Arts & Crafts Festival, had over 270 vendors last year.

There are two stages with quality bands playing live music throughout the weekend- one at the foot of Hermosa Pier and another in the Beer & Wine Garden. The crowd is always fired up, and dancing is highly encouraged. 2009's Fiesta Hermosa will feature amazing cover bands at the main stage on the pier: Stevie Nicks, Jimi Hendrix, Neil Young, Boston, Foreigner and Bon Jovi will all be represented this Labor Day. At the Beer & Wine Garden stage, Rock n' Roll, classic rock, funk and rhythm and blues bands will be tearing it up for all 3 days.

The Food Court, just south of the Hermosa Pier, is another of the major higlights of Fiesta Hermosa.

Your best (and much more convenient) parking option is to use the Fiesta Hermosa Shuttle Service. Free Shuttle Buses run daily from 7:30 a.m. to 7:30 p.m. from the Northrop Grumman Parking Lot at the intersection of Manhattan Beach Boulevard and Doolittle Street.

More information about the Festival can be obtained at www.fiestahermosa.com/

It wasn't long ago that many homes on the Hermosa Beach Strand sold before ever even hitting the market. The demand for these oceanfront lots and homes was most often fueled by builders and the premium that new construction almost guaranteed with new construction homes surpassing the $10,000,000 price. It was rare to see more than 1 or 2 Strand homes for sale and they generally didn't last long.

Another beautiful sunset on the Hermosa Beach Strand

That has changed recently with both new construction and older homes on the market. There are currently 7 homes on the Strand for sale, with several more at the beginning stages of construction. The prices range from $5,500,000 to just under $9,000,000 depending on location, age and size.

• Current Hermosa Beach Strand homes for sale
• View all Hermosa Beach real estate and homes for sale

The Hermosa Beach Strand is the epitomy of beach living with panoramic views, the beach as your front yard, constant ocean breezes and the sound of crashing waves just outside your door. If you have ever considered purchasing an oceanfront home in Hermosa Beach or the South Bay....this might be the time with increased inventory and a number of options. Prices on the Strand have remained as strong or stronger than anywhere in the South Bay.

Keith Kyle - Realtor, e-Pro - South Bay Brokers- 2501 N Sepulveda Blvd Manhattan Beach, CA 90266 - 310-251-2344 - Keith.Kyle@SouthBayBrokers.com

For real estate information, open houses, and FREE MLS access visit www.KeithKyleHomes.com