Unlike Manhattan Beach CA and most of Redondo Beach, Hermosa Beach is considered by Zillow to be neither a Buyer's or Seller's market but a neutral one. A very expensive neutral market by most standards of housing but neutral none the less. So, if you've been thinking of buying a home in Hermosa Beach, this could be a great time to jump in. If you've been thinking of selling, possibly waiting until early 2015 might be better advised.
The median home value in 90254 is $1,258,900. 90254 home values have gone up 6.7% over the past year and Zillow predicts they will rise 1.9% within the next year. The median list price per square foot in 90254 is $827. The median price of homes currently listed in 90254 is $1,649,000 while the median price of homes that sold is $1,330,769.
By comparison, the median home value in 90266 is $1,856,800. 90266 home values have gone up 16.7% over the past year and Zillow predicts they will rise 5.0% within the next year. The median list price per square foot in 90266 is $908, which is the same as the Manhattan Beach average of $908. The median price of homes currently listed in 90266 is $1,899,000 while the median price of homes that sold is $1,967,500.
So for roughly about a 30% discount (more or less) to Manhattan Beach, you can live the Hermosa Beach lifestyle with almost all the same amenities except saying that you live in 90266.
I've lived in both the Manhattan Beach Sand Section and the Hermosa Beach Sand Section and can tell you from experience that there is far more in common in those neighborhoods than lets say HB Sand vs Manhattan Village. Of course living in any neighborhood of Manhattan or Hermosa is about as goof as it gets here in Socal Beach living.
When you look at the number of renters it is not hard to understand why finding a place to buy is so hard: many of these properties are residential income units for their owners and they will hold on to them for a very long time.
Another variable suppressing more inventory coming available is that there just aren't very many foreclosures or even homeowners "under water". The percent of delinquent mortgages in 90254 is 2.6%, which is lower than the national value of 6.9%. So that's not a driver of new listings.