Hermosa Beach Real Estate – Reviewing Trends and Price Tendencies

The name “Hermosa” means “beautiful” in Spanish and Hermosa Beach real estate may accurately be described as full of beauty. Though the population is a mere twenty thousand people, it boasts some of the most popular and desirable locations to live in the entire Los Angeles region. Hermosa Beach real estate boasts the pedigree of having one of the best-looking beaches in all of southern California with sunset views from nearly every home. If you are interested in purchasing Hermosa Beach real estate, the time is now, as prices are trending up again after a steep drop — the low prices will not be around for long.

Like many other places in the country, the value of Hermosa properties have dropped considerably in recent years. Compared to the neighboring real estate of Manhattan Beach, which has dropped and is slowly making its way back up, the trend for Hermosa Beach real estate has been much more dynamic. At the beginning of the 2009 year, the value of a home was at an all time high, worth an average of 1.85 million dollars with a mere 55 home inventory and fierce competition. Since then, however, Hermosa has been a whirlwind.

Reviewing the value of Hermosa Beach real estate since January of 2009 has been similar to watching a roller coaster. The pinnacle figure of 1.85 million dropped to 1.4 million in the course of only six months: by July of 2009, the average loss on property had been just under one third of its total value. This is not as bad as some areas of the country hit by the housing bubble but still one of the fastest drops in all of southern California. Some homeowners panicked and sold while the value was still high, creating around two dozen new home inventories on the Hermosa real estate market and further lowering the value of new sales.

The rock bottom would be reached by February of 2010. Only one year had passed since an average house was worth two million: now they trended around 1.2 million dollars and had lost almost forty percent of their average value. By August of 2010, the inventories had stabilized at fifty while the median value rebounded to a strong 1.6 million, cutting losses in half. This may have been the second peak of Hermosa Beach real estate as the average value of a home has not hit that figure since autumn of last year. The dips in price, however, have been much less drastic. In the past year, the average value of Hermosa Beach real estate has not been below 1.4 million dollars and not above 1.5 million dollars. The loss in value can be reflected by the availability of new properties, as there are seventy-two current vacancies for properties in Hermosa, making it amenable for new homeowners to jump on the lower prices and greater variety. Matt Pernice assists buyer and sellers in the Hermosa Beach community.

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