Hurricanes and earthquakes notwithstanding, it's been a hot, sticky, relaxed Summer. Entertainment and hotel industry strikes, interest rate hikes, transfer tax increases and inflation in the news along with an increased awareness on homelessness and crime, global warming, rising sea levels, unstable geo politics…shall I continue? 

One does not have to look too far to see a negative news blurb and in spite of this, Westside real estate demand remains strong. Not quite as strong as last year but strong nonetheless.  

How much slower? The first half of 2023 saw only 54 homes sold and closed in the 90402 zip code.

I am measuring January 1 to July 1, 2023 and comparing it to the same period in 2022.

There were seven properties in escrow as of Friday, August 4 and 41 active listings available for sale. This includes the Santa Monica Canyon streets - Entrada, Sycamore, West Channel, Rustic and Mabery. 

The least expensive (and smallest) home available right now happens to be a 1 BD+1 BA, under 700 sqft on a 2,400 foot lot at 207 Entrada, listed for $1,575,000

Many of you probably are aware that Santa Monica Canyon, despite having a Santa Monica ZIP Code (90402), is actually part of the city of Los Angeles. As a result, getting a building permit and accessing services like schools, police, and fire assistance is alittle easier in the Canyon compared to Santa Monica proper. Many of the homes and lots are smaller than those in the Santa Monica section of 90402, because of this Santa Monica Canyon is almost always more affordable than the “flats”.

The least expensive closing in the 1st half is a 3 BD+2 BA of 1,254 sqft in the 600 block of 7th Street that sold for $2.5 million. It has a lot size of 4,811 sqft. 

The most expensive closing so far this year was 210 Marguerita Avenue

A new 10,000 sqft home on a 12,437 foot lot. It’s interesting to note that that home was originally listed for $20 million, which was a bit ambitious.

It was later reduced to $18 million and then further to $17 million, eventually leading to its sale. Regrettably, a competitor managed this transaction; however, given the chance, Pence Hathorn Silver | Compass, would have handled it differently.

The second runner up for most expensive closed sale year to date this year is 1923 La Mesa Drive.

This is a 7BD + 8BA home with a Riviera golf course view. Tax records show the home to be 5,162 sqft on a lot of nearly 28,000 sqft.

Pence Hathorn Silver estimated the value to be around $15 million. The seller decided to go with a different firm and listed for nearly $20 million. Several price reductions and the better part of the year later, the home ended up closing at $14.3 million. I believe had these owners listed the property at a more realistic price at the onset, they would’ve seen a better price at the closing. 

Of course, nobody can predict exactly what the home is going to sell for and unless a homeowner contracts for inspections to be performed prior to entering the market, there are often surprises that require price concessions along the way toward closing. 

Comparing 2022 and 2023 - there were 73 closings at this time in 2022 with the least expensive and most expensive homes both located in the Canyon. The low was $2.6 million, and the high $18 million for a beautiful property on Latimer. 

In a typical year, the first half of the year is busier than the second half. Due to this, I expect less than an additional 50 for closings from July to December 31 this year.

In summary, the North Santa Monica real estate market has been slower but steady this year so far with no huge price drops and lighter demand hence fewer sales. If it is any consolation, after speaking with my colleagues in the neighboring cities Brentwood, Pacific Palisades and Malibu, I am told that their sales stats are not nearly as good as Santa Monica.

More real time 90402 updates…

The highest list price for any home on the market right now is $18 million for 226 Palisades Ave. This is a 7BD + 6BA home of 7,200 sqft on slightly more than a 26,000 sqft lot. It is a Green & Green Craftsman style built in 1917. I'm not one to start rumors, but I heard pop singer Jackson Browne is said to have lived here 30 years ago. 👀.

The most recent listings are:

326 9th Street- Listed by Pence Hathorn Silver for $3,995,000. This cute, little (less than 1,800 sqft) home will quickly be under contract. We strategically priced it to obtain multiple offers and sell for top dollar.

640 17th Street- Listed by Pence Hathorn Silver for $6,995,000. Beautifully renovated 5BD + 6BA in nearly 6,000 sqft. This home is also available as a fully furnished lease for $32,000 per month.

255 14th Street- Listed for $3,390,000. Trust sale, lot value which should be under contract quickly.

527 9th Street – Listed for $5,800,000. Built in 1999 this house provides a great floorplan to update to the latest and greatest! Just over 4,600 sqft and built under the old codes so it lives large. Last sold in 1999 for $1,880,000 when it was brand new.

Since August 1st there have been just 3 closings:

319 14th Street- Sold for $7,600,000 by Pence Hathorn Silver. Originally listed at $7,988,000.

364 21st Street- Sold for $9,670,500. Originally listed for $9,998,000.

551 Lincoln Blvd – Sold for $5,600,000. Originally listed for $5,895,000.