Tree Section Land Values Rocketing

By Dave Fratello | October 23rd, 2014

Something's up with Tree Section lot prices.

Way up.

It was just 10 months ago when MBC pronounced "shock" at a Tree Section land sale at $1.515M. Doesn't that look quaint now?

That sale was at 750 30th, a nicely located 5400 sq. ft. plot. A spec builder beat out 30+ other offers (yes, 30+) and paid that big number for the land alone. (See "Lot Shocker: 750 30th.")

The most recent pure lot sale in a choice location was 43% higher: 2001 John closed last week at $2.150M.

What was once "shocking" at 750 30th now looks like a very decent land deal. No one has gotten a prime lot on the public market for that kind of price recently.

Now, the one that seemed to start it all, 750 30th (5br/7ba, 5070 sq. ft.), is up on the market as a new home. (This is a rendering, as construction is not complete.) They're asking $4.499M. (Can we just say $4.5?)

Of course, not all the past year's prime lot sales went to builders. The folks we term "owner/users" (buyers buying lots for their own custom builds) are a big part of the lot sale frenzy.

It's still in range of memory that there was a time here in Manhattan Beach, California, not long ago, when average Tree Section lots had dropped to around $800K in value. More prime properties could get over $1.0-$1.1M.

Now, add another million.

Here are links to each of the sales referenced in our snazzy graph above:

Not every lot's at that price point, of course. In April, for instance, while values were shooting into the $1.7-$1.8M range, 2409 Poinsettia sold for $1.400M to a developer. More recently, in July, the corner lot at 3101 Maple sold for $1.650M.

But wherever you look, the numbers are up, rocketing to new heights.

What's next is new spec homes looking to carve out new heights in the 4's, and even 5's. That's today's bet anyway.

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