2016 Saw Bounceback in Sales, Higher Median Price

By Dave Fratello | February 14th, 2017

The full year data for 2016 are in, and Manhattan Beach real estate rose to a new high.

With a median price of $2,075,000, local real estate carved out a new peak.

However, that's a rise of only $15,000 in the median from 2015, less than 1%.

As you see clearly in our chart, that's a significant leveling out, after a price trend that had been all uphill. The year-to-year increase in the median price for Manhattan Beach:

2012-2013: 15%

2013-2014: 17%

2014-2015: 8%

2015-2016: 1%

So maybe we're leveling off now? 

There's some other good news in the numbers. The number of sales actually ticked up in 2016 after 3 years of decline.

As you see, while prices were rising in recent years, the total number of sales was actually declining. We've speculated here quite a bit about whether declining sales and rising prices might be traceable, in part, to very tight inventory numbers. (There were fewer homes for sale, therefore there were fewer sales, and people were willing to pay more... get it?)

With the steady increase and lingering of inventory in 2016, we actually did see more home sales: 391 compared to the prior year's 359. That's a decent 9% increase in sales.

The actual figure of 391 looks a bit more like the recovery years of 2010 and 2011 than the red-hot years of the recent local run-up.

If prices stop escalating and inventory holds at higher figures, might we see more sales this year?

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