8 of 11 Homes in El Segundo Ever Sold Over $2.0M Have Been in 2016*

By Keith Kyle340_Via_Colusa_front6 copy

If you need any evidence that prices are sky high in El Segundo just look towards the luxury market.  It wasn’t long ago that we wrote a post on whether El Segundo was ready for $2,000,000 homes and it seems that it’s relatively commonplace just 12 months later.  As of July 17th there are 3 single family homes in El Segundo priced over $2,000,000.  In the nearby luxury real estate markets of Manhattan Beach and Hermosa Beach this wouldn’t be unusual but in El Segundo it’s fairly unbelievabe. It’s certainly due, in part, to many buyers being priced out of the South Bay and their money goes much further in El Segundo.  In addition there is a pending sale and 4 closed sales in 2016 priced over the formerly unheard of $2.0M mark.
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In 2016 we’ve seen 4 $2.0M+ homes plus the one home in currently in escrow (as of 7/16/16)

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*Statistics based on MLS sales of single family homes.

Is El Segundo Ready for $2.0M+ homes?

By Keith Kyle840_Center_Street

El Segundo is a fantastic little town that has a small town feel that most areas can’t duplicate.  While there are an abundance of townhomes and condos, the bulk of the homes are some version of the original beach bungalow.  Many have been nicely updated and expanded while some are in fairly original condition.

Unlike neighboring Manhattan Beach, El Segundo hasn’t seen quite the same building boom creating oversized luxury homes and there are several reasons.  The primary reason is that values, while having gone up considerably in the past 2 years, haven’t rocketed upwards to the same extent and builders eager to build high end luxury properties may not see the margins and are searching elsewhere.

View the current homes for sale in El Segundo priced over $2,000,000

So will El Segundo see an increase in luxury $2,000,000 homes?  It still appears unlikely other than the rare case of a truly special home on an oversized lot in an A+ location.  There will be a limited amount of homeowners that simply love El Segundo that build their dream house and at some point those homes will be sold, but it’s very unlikely we’ll see too many luxury spec homes built as the cost of lots/tear down homes, plus the cost of building makes for a challenging investment.