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The Dirt on Who’s Buying

Posted by John Hathorn on January 11, 2017
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215 21st PlacePeople in the neighborhood often ask me “Who can afford these prices – who is buying up all this real estate?”

The last time I wrote about this my answer started with “who is not buying; doctors”. I am happy to report that I know of 4 doctors that were able to buy last year. One was a dentist that bought a house on 18th. There were multiple offers on that house and I am sure the dentist feels lucky to have prevailed.

A brain surgeon bought a beautiful new home on a 50X150 lot. For a while there, doctors for the most part, seemed to be priced out of the flats of 90402.

About 58 homes (not condos) in the flats (not Santa Monica Canyon) show as closed in the MLS in 2016 in the 90402 zip code.

The biggest group of buyers, as a whole (and if you go around the neighborhood you’ll see the proof) were developers. At least 8 of these spec homes, will be for sale in the coming months.

The entertainment industry is still well represented with 4 property closings attributed to producers, directors, models and actors.

Several (at least 3) of our 2016 buyers are employed in the financial services sector.

3 retired CEOs bought last year. 1 is moving here from out of state to be closer to his adult child and grandchild.

Of course we always have a few “trust funders” that buy and this past year was no exception.

2 presidents/owners of manufacturing businesses and 3 software engineers purchased homes – 2 in Gillette’s Regent Square and 1 on a 50X150 lot west of Gillette.

At least 6 of the 2016 closings were attributed to attorneys.

One very successful musician bought and moved his young family into a nice home on 23rd Street.

It will be interesting to see who the buyers are for this next crop of spec homes coming up shortly. Check back with me in 6 months and I will share the information with you as 2017 begins to shape up.

And now it’s time for a little dose of real estate happenings for 2017:

Two new listings came on the market now that we are officially out of the holiday season.

835 San Vicente– 5 bedrooms and 7 baths, $6,375,000. This rare 20,000+ sq. ft. lot value has been off and on the market since late 2014. Once asking $9,450,000; it is now back on the market for $3M less than originally offered. It is subject to Bankruptcy Court Approval and Overbid. It will be interesting to see which of the dozen usual suspect developers takes this one. Last sold in 2002 for $2,200,000.

215 21st Place5 bedrooms and 4.5 baths, $4,595,000. European style meets California coastal comfort!  A gracious indoor-outdoor open floor plan, guest house, and ideal scale gives it a wide range of appeal to many different types of Buyers. Listed by Pence Hathorn Silver and poised to be the next sale NoMo.

Three homes have gone under contract since the New Year –

415 7th 7 bedrooms and 9.5 baths, $9,500,000. Once again after a few false starts, this newly constructed 8900 sq. ft. Traditional is back in escrow! Originally listed for $11,500,000, I have a feeling this time, it will stick.

427 14th– 2 bedrooms and 2 baths, $2,995,000 – this 50×150 lot value is in escrow quickly with multiple offers despite the “slow season”.  It was previously listed and later withdrawn in 2015 for $2,600,000! What a difference a year (and a half) makes!

402 Alta– 4 bedrooms and 4.5 baths, $3,975,000. This custom contemporary Mediterranean is under contract after being re-listed at a significantly lower asking price. Previously listed late in 2016 for $4,795,000. A reduction in excess of $800,000 appears to have done the trick in finding the right buyer!

Two closed sales to report-

312 16th Street– 4 bedrooms and 3.5 baths. Sold for $5,015,000. This is a huge sale price. Record breaking in fact. The tax rolls show the home at approx 2,409 square feet and the lot is 50×150. That is $2,081+ per foot. Very high style but, sheesh, that is a lot of money.

624 Marguerita Avenue – 4 bedrooms plus 4 baths.  Sold for $5,038,000. Not a bad sale price for the corner of Marguerita and 7th St.

Call me for a couple of upcoming attractions that are not yet listed in the MLS, priced from $1.9 million to $8 million.  And….here are a few that we have listed in the MLS:

1024 Palisades Beach Road – 5 bedrooms and 8 baths $9,250,000

323 Adelaide Drive – 4 bedrooms and 6 baths $6,895,000

920 Alta Avenue – 6 bedrooms and 6.5 baths $6,595,000

215 21st Place – 5 bedrooms and 4.5 baths  $4,595,000

1023 S. Bundy Drive – 2 bedrooms and 2.5 baths $2,049,000

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