At a time when the market seems to be moving, and prices firming up, along comes one weird sale.
A 2022-built modern condo/townhouse at 615 Aviation Way (3br/3ba, 1844 sqft.) has just closed for $1.505M.
That's not just far below the last asking price, it's well below all the asking prices across two separate listings from the past year, AND it's $230K below acquisition.
This year's seller paid $1.735M just a blink of an eye ago, in May 2022.
The seller initially sought a hearty markup, listing for $1.949M in December last year, and never dipping below about $1.840M in a listing that ran till May.
They rebooted with a new agent in June, again holding fast to the hope of getting out mostly whole, asking $1.799M.
Soon, the asking was down $100K, then $50K more, before closing almost $150K additional below the last price, at the aforementioned $1.505M.
This looks outwardly like a case of a seller who eventually needed to sell, met by a buyer capable of driving a painfully hard bargain.
Since we know that the market was shocked by mortgage rate spikes in May '22, and this sale has now closed 13% lower than its acquisition price at the time, there would be a temptation to view this one sale as a barometer.
Problem: There's virtually no other evidence for prices being down 13%.
We have taken note of sales here and there that were 5-8% below peak prices.
But then, we're also seeing some prices begin to rebound, like East Manhattan cottages and lot sales, along with some impressive Tree Section sales, where land is the main value.
And if we were to somehow focus only on Manhattan Beach properties east of Aviation – yes, east of Aviation – then, even there, we lack evidence for a price bloodbath. For instance, there was the recent closing in the popular row-house style community of "Manhattan Pointe," where 225 Aviation Place (3br/3ba, 1646 sqft.) got $1.400M, a new record price for the development (by $20K). (See "Record Price Sneaks Up in 'Manhattan Pointe.'")
As nice and new as 615 Aviation Way might be, it's in a different category than most of the Manhattan Beach market.
The location is kinda North Redondo, the busy street's a factor, and that little development of condos is sort of its own world.
It's best not to generalize from there about the market, but it's an important data point nonetheless, for comparable product and locations.
Yeah, yeah, we know what you're saying: Have you considered a matched-pair sales analysis, to look at recent resales of homes purchased during the fast-rising tide of 2021-22?
Why, yes. We'll see what we can pull together and share the results down the road.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.
