markup

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About 3 years ago, the buyers' market in Manhattan Beach was winding down. A firmer, more optimistic market was taking shape. It would gradually become the current rally, or whatever you want to call today's rapidly rising market.

In June 2011, we were accustomed to seeing homes trade around their 2004 values. And yet, 319 S. Poinsettia in the Hill Section sold then for a notable markup over its 2004 sale price. That got MBC's attention at the time. (See "A Big Markup Over '04.")

The 2004 sale of the home, when new, was at $2.137M. The resale in a (supposed) buyers' market was for $2.495M, the list price, which had seemed ambitious at the time.

A 17% bump over an '04 price back then was an outlier.

Now the home is back up at $3.999M (can we call it

This year is full of stories of short-term holds resold for a profit. It's a classic rising-market (bubble?) phenomenon.

One of the boldest is the newest listing to hit the market, 88 Manhattan Ave.

This is a 3br/4ba, 2150 sq. ft. detached TH with a mid-90s build date and much more recent updates that gave it a modern feel.

This one traded back in May 2012 for $1.925M, and is back now offered to the public at $2.650M. That's a markup of $725K and 38% over the acquisition price about 18 months ago.

Interestingly, the same property was offered three times during the slow years of 2009-2011 at prices ranging from $1.899M down to $1.799M. It never could sell. The 2012 sale was arranged off-market.

What matters, of course, is not the history, but the current…

We're starting to see quite a few homes bought and put up for resale within the year. It may not always be profiteering or a fix-and-flip situation, but quick resales are benefiting from the quick uptick in prices in MB.

Ordinarily, if you were to buy a property to remodel and resell, you'd need to get it close to, or under, market price, do the work and resell at such a price as to mark a solid profit. Indeed, some say the profit is all made in the acquisition price.

Then there's 309 18th St.

Not so long ago, this Spring, 309 18th drew multiple bidders, finding one who just cleared the field with a monster offer.

To wipe out the competition, the buyers paid $2.459M in March, against an asking price of $2.099M. That was an overbid of $360K (+17%).

And this…

We have to go back to May 2010 for the story of a failed listing where everything kinda worked out.

They were selling 219 N. Dianthus (4br/4ba, 3300 sq. ft.) at that time, hoping to get $2.089M, just a little over the late-2006 acquisition price of $2.000M.

The big, big, big views were the chief asset. The extra square footage for this tall and skinny home was another plus.

But the listing did not pan out, and it quit, quietly, in late 2010.

Come Summer 2011, luck was in the air. An off-market offer came through, and 219 Dianthus sold for $1.750M.

That was $200K lower than the last asking price from 2010, and $250K lower than acquisition, but in 2010-2011, you took what you could get and moved on. The market then felt mostly flat, and memories of the…