Ellis Posner Real Estate Year in Review 2021
As things turned out, 2021 was my best ever in Real Estate. I knew starting the year that it would be strong but little did I suspect that I would do over $38 million in total sales, close 25 sides plus 3 lease listings. Wow.
Why did I know I would have a good year? Well if you haven’t heard, the Real Estate market has been on fire. And as I always say I know that if I do certain things in a certain way I will get business. And that’s all I have control over - what I do. Pandemics. mortgage rates, inventory are all out of my control. Like way out.
And as has been the case throughout my career, the business was evenly divided between sellers and buyers with 12 of each. Throw in 3 lease listings and I was pretty busy.
Most of my business is in the South Bay Beach Cities of Manhattan Beach, Hermosa Beach and Redondo Beach CA.
I did 15 transactions in the Beach Cities including 10 in Redondo Beach where I have been on of the top rated agents for - well as long as I can remember.
I also did a few deals in Palos Verdes but beyond that, many of my clients took my “have car - will travel” Instagram posts pretty literally.
I sold homes in Orange, Venture, and Riverside County with a distance of over 100 miles between a property I sold in Newbury Park and one in Mission Viejo in South Orange County. Throw in another sale in Thousand Oaks and Huntington Beach and La Quinta for good measure. And I’m not even counting the house that my wife and I bought in Palm Springs because that one isn’t even built yet!
All that driving sure seemed like a good idea a year ago when there was less traffic on the road. These days the 405 is back to being a parking lot so I might be staying closer to home in 2022. Well I say that now but that will probably last until someone calls and then I’ll be visiting “points beyond” again.
The lowest priced home I sold was $450,000 and the highest was $3,351,750 with the median price being $1,588,250 which was just about what the average was as well.
Ready for a month by month recap? Let’s get started. Buckle up, this ride is one of the longest blog posts I have ever written. And that says a lot!
JANUARY 2021
As the year started off we were still in the pandemic protocols for showing with PEAD forms, lots of social distancing, and appointment only showings.
I started off the year with sale of 3001 Blasidell Ave in North Redondo Beach. This SFR is in what is referred to as the TRW tract. Very unique house with a legal Accessory Dwelling Unit (ADU) but that doesn’t always result in the easiest sale when the property is not the usual cookie cutter that Buyers are looking for. Also much of the customization that the Sellers had done were what one potential buyer referred to as “nice to have” but not necessarily added value from a sales perspective.
The Sellers were smart enough to do a number of updates and also moved out to make it easier to show. We also did a few iterations of updating and staging to attract Buyers and get it into escrow. Took a lot longer than it would today but it was sure nice to break the ice with a closed sale at $1,350,000 the first month of the year.
Here’s a fun video I did for the “final staging” after we tried everything else.
January was also the month I started to suspect that we were in an entirely different market than anyone had seen before.
Here’s why.
When I launched my listing at 1021 Avenue D in South Redondo Beach in mid January, I started getting calls 15 minutes after I made it “active” in the MLS and it was in escrow the next day for over the asking price and sold for $2,200,000. I advertised it as:
“Location and size, you can have it all in this huge updated 4112 Sq Ft SFR on “The Avenues” in Redondo Beach. This massive south facing 4 bedroom home is drenched in natural light and features 2 over sized living areas, a gourmet kitchen, 3 fireplaces, 4 decks making it perfect for entertaining and enjoying the indoor - outdoor Beach Cities lifestyle. ”
If you are not familiar with “The Avenues” those are the streets in South Redondo Beach named (not surprisingly) Avenue A, Avenue B, Avenue C etc. They run from the Esplanade to the Redondo - Torrance border. In my opinion, the Avenues are one of the most desirable neighborhoods in the Beach Cities.
3D WalkthrougH
FEBRUARY 2021
I was still quite unprepared for how strong buyer demand really was. I found out in February when I put a townhouse at 15822 Normandie Ave in Gardena on the market and spent 2 cold February days outside the unit trying to organize the very carefully scheduled appointment only showings to keep on schedule. To no avail. There were 30 showings per day scheduled in 15 minute increments meaning that after 20 minutes we were off schedule. That sale closed in March for $492,888 which was $70K over the asking price after the usual round of multiple offers and bids.
MARCH 2021
Well I think I figured out, not a fluke at all. There were buyers in the market at all price points. When I put my listing at 1705 Marshallfield Lane Unit B in Redondo Beach on the market, same crazy scene with the weekend appointments and buyers lining up down the driveway. Here’s why:
“4 bedrooms upstairs, two living spaces downstairs, a formal dining room, 2 fireplaces, a separate laundry room, large primary bedroom with en suite bathroom including a dual sided fireplace and walk in closet, and a backyard set up for entertaining with an outdoor kitchen with a Fire Magic grill and appliances plus low maintenance turf, this will be your new home.
Recent updates include new exterior paint, new plantation shutters, new A/C unit, garage floor tile, light fixtures, and a storage shed. Centrally located with easy freeway access and lots of restaurants, food stores, shopping, and movies nearby. Under 2 miles to the beach.”
So no surprise that there were multiple offers and overbids. That property sold for $136,000 over the asking price and closed escrow for $1,525,000. And the Sellers got a leaseback. And I was able to get their contingent offer accepted on their up leg.
The up-leg was on a property in Huntington Beach in a gated community on a golf course. 6362 Doral that they actually got for $75K less than the list price - it closed at $1,925,000.
Are you seeing a trend emerging?
APRIL 2021
While market demand was crazy hot, unless properties were priced exactly right and presented in a certain way, they could linger on the market and not sell for what I call “full market value”. In other words the highest possible price.
And I saw this just wasn’t an LA County or South Bay thing when one of my long time landlord clients asked me to help him and his wife buy a new principal residence - in South Orange County.
We saw the same thing happening down there as everywhere else: crushing crowds at what were now Open Houses, multiple offers and bidding wars.
But I was able to find a totally remodeled home for them in Mission Viejo that was priced just ever so slightly high and was being avoided by the hordes who seemingly preferred the bidding wars. They bought 26592 Sotelo and snagged a great fully remodeled Single Family Residence for $1,215,000.
So of my 3 closed sales in April, 2 were in Orange County. Fortunately gas hadn’t gone up yet. Have car will travel!
MAY 2021
Remember my sellers of the townhouse in Gardena, well they got into escrow on a property in Thousand Oaks. 1797 Orinda closed in May for $525,00.
Also in May I had two sales much closer to home.
706 N Dianthus in Manhattan Beach (3,351,750) was a buyer deal. Another good example of how my guidance helped my clients get a great deal on a Hill Section home at about the same or lower price as others were spending in East Manhattan Beach. Experience counts.
2417 Grant Unit B in Redondo Beach was another listing I sold.
Actually it was the second time I listed and sold Grant. And guess what? Yes, long lines outside the house, multiple offers and it sold for $1,050,000 which was $101,000 over the asking price. Looks like my marketing strategy still works. Well actually it works really really well.
For the last few years North Redondo Beach has been one of the hottest markets in coastal LA County and I expect it to remain that way because even at the higher price points we are seeing, the value is still exceptional with great schools and other amenities.
May was also the month of leases. I listed and leased 948 Paseo La Cresta in Palos
Verdes Estates and 632 Seabright Circle in Costa Mesa. Yeah, the OC again.
JUNE 2021
Which brings us to June and another three closed sales - 2 listings and buyer deal.
It also was the month that I saw first hand 3 trends that would continue for the rest of the year and possibly into next year.
My listing at 125 1st Court in Hermosa Beach was in escrow to be sold to a builder who was planning on knocking down this super cute duplex to build 2 townhomes. That was all well and good until the escrow was canceled because, yes you can probably guess it, the cost of materials had gone up so much that they didn’t think they could make any profit. That was during the height of the lumber run up as well as other materials.
But the builder didn’t factor in how much prices would go up and I was able to find another developer who wanted the project at a sale price of $2,00,000 just for the land.
The second phenomena I experienced first hand was the no loan and no appraisal contingency buyer deal - even though my buyers had to drag me into it kicking and screaming. While I had always thought it to be too risky, truth of the matter is that if you are buying a single family residence and your file is entirely underwritten by a reliable lender such as Chase or any of the other big banks, this is not quite as risky as it might seem at first. I would not recommend this on any property that has a HOA because while the credit file may be ok, if the HOA has issues with reserves or other finances the deal might not go through.
As for no appraisal contingency, well if you have the funds to cover a shortfall, why not? Particularly if you can bracket the amount the shortfall might be. Fortunately for my buyers of 2305 Oak Ave in Manhattan Beach the property appraised and their credit was spectacular, so no issue there.
As for the rather odd selling price of $2,337,000 well that’s what happens when you have an escalation clause at an uneven number. And escalation clauses are another thing we’re seeing a lot of these days.
The third deal for June was my listing at 2519 4th St in Santa Monica. Yes, I know you are disappointed that it wasn’t further away from my home in Redondo Beach. That listing proved that pricing is more of an art than a science. While the initial strategy was to price it somewhere in the mid to high $700’s at literally the very last minute I decided to up the price to almost $800K and it sold slightly higher for $805,000 with no appraisal contingency of course.
Half the year gone and hopefully you are still watching.
JULY 2021
July was slow by comparison - 2 buyer sales. One in Newbury Park because I really needed to put a lot more miles on the car and the other in South Redondo Beach because the beach is what I do.
The Newbury Park townhouse at 607 White Oak sold for $630,000. Curiously in the small world of Real Estate I inhabit, my clients who bought the townhouse in Thousand Oaks also made an offer in the same complex in Newbury Park. So I sure sounded really knowledgeable when my buyer client asked about that property because I knew the complex. Speaking of driving, the listing agent was based out of Santa Barbara so we were both driving quite a bit. And yes, the buyer waived the appraisal contingency.
And closer to home I represented a buyer in the Village Palos Verdes complex in South Redondo Beach which is actually in the city of Torrance. Got that?
This is one of my favorite complexes - it sits at the foot of the Palos Verdes Peninsula, many homes have ocean views and you can walk to Riviera Village and RAT beach from there. The 2 bedroom plus den ocean view property at 111 Calle Mayor sold for $1,452,000.
AUGUST 2021
August was my second slowest month of the year with only one sale. So why not drive somewhere really hot - like La Quinta to sell a small SFR in a gated community at 80776 Via Puerta Azul for $450,000. I think it was 120 degrees when we were out there. In the shade.
SEPTEMBER 2021
But I kept busy closer to home with my listing at 1829 Oak Ave - yeah another one on Oak in Manhattan Beach. That one closed right at the beginning of September for $2.2M. It was also the first Open House I did since the pandemic started. Definitely a different experience than in the “before times”.
You’ve probably seen those videos where I snap my fingers and pop some furniture into empty rooms. Well on that property I had to virtually stage it over the sellers furniture in the main living areas. Thankfully they didn’t get offended. Closed escrow at $2.2M. That seems to be a good number for me lately.
Also closing in September was my sale at 5822 Finecrest Dr in Rancho Palos Verdes which sold $1,615,500. And yes, because it was a SFR the buyers waived the loan and appraisal contingency because, that’s the new normal, right?
OCTOBER 2021
October was a month for closed listings.
634 9th St in Hermosa Beach sold for $2,225,000. A few good data points on that one.
First if you are looking for “evidence” that I really do get results that others don’t, well look no further. The unit I had listed sold in 9 days and over the asking price. That one was a middle unit. Well the font unit which was virtually identical but only had one common wall was on the market at the same time for less. After 62 days that seller put the listing on “hold”. ‘Nuff said about that.
Also I actually physically staged the house - well except for 2 rooms which I virtually staged. While I am a big fan of virtual staging, sometimes you need the furniture to create the right beach-y feel.
And yes, I did Open Houses including the Broker’s Open.
Speaking of Open Houses the traffic at my listing at 836 Calle De Arboles in the Hollywood Riviera neighborhood of South Redondo Beach was crushing.
I guess that can be expected when you list an updated 3 bedroom 2 bath house on one of the best streets for “only” $1,599,000. And even better it backed up to the trails separating Redondo from Palos Verdes Estates.
It closed for $1,715,000 after 4 days on the market and the sellers had their funds in less than 30 days after it was listed.
As nice as this house was in person, the furniture just didn’t look that good in the pictures for the MLS so I virtually staged some scenes. Do you think anyone said anything at the Opens? No way.
And to round out October, I found a tenant for my lease listing at 1612 Voorhees Ave in Manhattan Beach.
NOVEMBER 2021
November was back to one buyer sale and one sold listing.
My listing at 2707 Rockefeller Ln Unit C in North Redondo Beach sold for $1,350,000 after 6 days on the market. A “mere” $51K over the asking price but it served the purpose of getting into escrow so my seller clients could buy their up-leg property. This property was a three on a lot townhouse that wasn't that old - built in 2019, and oversize with a lot of features not usually found in 3 on a lots.
In addition to being the highly desirable “C” or rear unit with an exclusive use garage, it also had a roof top deck, loft and another outdoor deck off the main living area. Let’s take a look.
This was the 2nd time this year I was able to help clients buy before their home sold. In other words a seller becoming a successful buyer making a contingent offer. And both times things worked out.
I also represented the buyers of one of the most expensive homes ever sold in North Redondo Beach.
2610 183rd St went for $2,649,000. The huge 3500 Sq Ft SFR in the El Nido neighborhood was new construction designed by an internationally acclaimed architect and it really showed. Let’s take a look!
DECEMBER 2021
And I finished the year with 3 sales in December.
One was a listing in West LA at 1616 Granville Ave Unit 103. Great location and an updated condo. Since it was vacant I once again did the drop the furniture into the video trick.
Here’s what I learned on that sale: Westside agents don’t know how to use Supra boxes.
I’ve never had so much trouble with keys. It really isn’t that hard.
And finally 2608 Huntington Ln Unit A in North Redondo Beach which was also new construction.
Turns out that for the builder, no loan or appraisal contingency wasn’t enough. The builder also wanted the EMD wired directly to the builder bypassing escrow. That was a new one but these days buyers have to do whatever it takes.
But gorgeous new construction in the coastal style that everyone wants these days.
NOT QUITE DONE YET
Speaking of new construction, my wife and I bought a vacation home in Palm Springs which hasn’t closed escrow yet. Well it hasn’t even been built yet! All we have is some land at this point. And yes, I totally ate the dog food - no appraisal or loan contingency. How crazy is that? But at least I can authentically say that I’m not recommending my clients do anything I haven’t done.
So what do I attribute my great year to? Well my amazing marketing and winning personality of course. Not really. More accurately the housing market has been on fire and with the transition to work from home a lot of people have been on the move. Add to that, many of my seller clients. also bought other homes and I represented them in their purchase.
I really want to thank all my very loyal clients and those who have trusted me to help them buy, sell or invest in real estate.
But most of all I want to thank my wonderful wife for letting me be the workaholic I am and supporting my career goals.
On to 2022. Namaste LA