April was a solid month in El Segundo real estate with 13 residential properties closing escrow. The most notable sale of the month was at 321 Lomita. This was a beautiful newly remodeled single family residence with 5 bedrooms, 5 baths and over 3000 square feet. While multi-million dollar luxury homes are common in nearby Manhattan Beach, it’s rare to see any homes sell over $2.0M in this small coastal community. It’s especially rare for a remodeled and expanded home. It wasn’t all that long ago that we were writing about whether a $2,000,000 sale was possible in El Segundo as that had been an unheard of price tag at one point. The real estate market has certainly shown that El Segundo buyers are willing to pay over $2.0M for those special homes that come along. View all of the current homes for sale in El Segundo CA or sign up for free El Segundo home alerts and know about new listings as soon as they become available.
By Keith Kyle
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.
In 2016 we’ve seen 4 $2.0M+ homes plus the one home in currently in escrow (as of 7/16/16)
*Statistics based on MLS sales of single family homes.
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.
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.