317 23rd Street

Call John Hathorn for more details

After more than half-a-year since the disastrous Palisades fire, setting aside the conflicts that victims who have lost their homes and belongings are having with insurance companies and the LA City Building Department, much has changed.

Santa Monica and surrounding real estate markets saw an immediate increase in activity, both in number of transactions and in prices; and now, 6 months later, those metrics have settled back to pre-fire numbers.

If you are looking for a really cohesive narrative on what’s been happening in the Palisades, although this info is a few weeks old, it is very informative, and written by a real estate colleague, Anthony Margueles:

REBUILDING PROCESS

• As of June 1, the City of Los Angeles has issued 82 permits across 64 addresses for Palisades homes, with hundreds more currently under review.

• Pacific Coast Highway reopened last week to the general public,

• Temescal Canyon Road is also undergoing street repair as they plan on reopening this month. It has been used for the past 5 months as a debris recycling site (concrete and steel). Since Temescal is one of the three main thoroughfares in and out of the Palisades, it will be great to have it open again.
  
  

REAL ESTATE MARKET SNAPSHOT
PALISADES LAND ACTIVITY SINCE FEBRUARY 2025

305 total land listings have come on the market

• Active: 195

• In Escrow: 29

• Sold: 55

• Cancelled/Withdrawn: 24

• On Hold: 2
  
  

INVENTORY VS. SALES

New land listings continue to outpace sold lots, even as buyer interest picks up. The encouraging news is that the gap is lessening.

One trend to keep an eye on is the number of active land listings, as seen in the April to May period, where it dropped 23% (97 new land listings compared to 75). The main reason the number of land listings has dropped is sellers realize their lots have lost 35-40% of their equity (except for the Huntington, which has held its value much better). Many are deciding whether they should sell now or wait for the market to recover in a few years (if they have the time and financial resources to do so).

With approximately 6,800 Palisades residences destroyed, we expect about 30% will not want to rebuild, so around 1,800 - 2,000 lots will eventually come on the market. Therefore, we need to see many more lots come on the market, or it will take 20 + months for Palisades' land inventory to peak. (20 months x 75 new land listings per month =1500 + the existing 300 that have already come on=1800 lots). We expect active inventory to increase from 195 currently to a peak of 1000 active lots (at one time) on the market before we can start shifting from a buyer's market.

This chart illustrates the narrowing gap in monthly sold listings as a percentage of new listings. It will be interesting to see what the next few months bring. We will need to see at least a 50% absorption rate.

AVERAGE SOLD PRICE PER SQUARE FOOT BY NEIGHBORHOOD

Below is the average Sold Land Price per sq ft by Palisades neighborhood. I did not include all neighborhoods, only those with a higher number of sales. This is why the Highlands and Sunset Mesa, each with only one land sale, were omitted.

Note: Using only the cost per foot number below for your area and multiplying it by your lot size won't provide an accurate picture. Many additional variables affect value, such as corner lot, location (not as close to Sunset or a busy street), whether it has a view, the amount of usable land, and the size of the previous structure. This is where an experienced broker can help analyze the value.

LAND PRICE REDUCTIONS

Below is the increase in Land price reductions, indicating that sellers are pricing their properties too high. This reveals a disconnect between sellers and buyers. Many sellers incorrectly choose their asking price by comparing other active listings and hoping to achieve that aspirational price, but sold prices are the only accurate barometer of value.

LOOKING AHEAD

• Expect more permit approvals. It has been doubling each month, so we hope that trend continues.
  

• See more private and public partnerships, such as the recent announcement of an artificial intelligence-driven software system created by Archistar designed to accelerate building permit approvals. It can analyze building plans in days as compared to weeks or months.
  

• Buyer confidence will gradually return.

IN OTHER 90402 REAL ESTATE NEWS

In other, hyper local real estate news, here is the latest on 90402 real estate:

There are currently 34 active listings in North of Montana.

The least expensive is 602 26th Street, listed for $3M. The most expensive is 1115 Georgina Avenue, listed for $22.5M. Average Days on Market is currently 56.

Five came on the market last week:

317 23rd Street - Listed by yours truly, this single-level courtyard Spanish is full of classic charm. It has a lot of character and original 1930s detailing. It is one of those “wow” properties that has a real emotional draw.

415 Palisades Avenue - Listed by me for $6,475,000. This is a great Traditional style home. Over 4,000 sqft with 6 bedrooms, it has a really flexible floorplan. 

218 16th Street - Listed for $3,750,000. This a lot value property on a 7485 sqft lot. The current house is a 1929 Spanish, just under 2,000 sqft. First time on market in over 60 years.

409 19th Street - Listed for $5,549,000. This has been a longtime rental property, now offered for sale. Pretty Spanish home with an updated kitchen and original 1928 details and baths. There are 3 bedrooms within the 3,000 sqft of living space on an 8,955 sqft lot.

618 10th Street - Listed for $7,995,000. This is a Thomas James Home, under construction and available to purchase now, prior to completion.

There are 11 listings under contract:

207 10th Street - Listed for $4,895,000.

351 21st Street - Listed for $4,649,000.

634 15th Street - Listed for $7,995,000.

745 25th Street - Listed for $4,595,000.

314 22nd Street - Listed for $5,750,000.

621 21st Place - Listed for $8,495,000.

301 Marguerita Avenue - Listed for $7,895,000.

444 25th Street - Listed for $9,695,000.

327 22nd Street - Listed for $6,795,000.

627 17th Street - Listed for $4,250,000.

524 Lincoln Blvd - Listed for $5,175,000.

There have been 28 Closed Sales in the 2nd Quarter.

June’s closings are:

323 22nd Street - Sold for $13,400,000. Originally listed for $15,995,000.

720 San Vicente Blvd - Sold for $5,300,000. Originally listed for $5,650,000.

413 Euclid Street - Sold for $7,800,000 by Pence Hathorn Silver. Originally listed for $7,995,000.

543 14th Street - Sold for $ 6,460,625. Originally listed for $6,780,000.

219 23rd Street - Sold $7,733,000. Originally listed for $8,995,000.

We have a number of upcoming listings ranging in price from $5.5M - $18M. Call me for more information.