Absorption – In Summer? (Big Time)

By Dave Fratello | August 9th, 2016

Typically, the only things you have to worry about absorbing in Summer are the sun's rays and (perhaps hefty) bills for camps and travel.

2509 Walnut Avenue Manhattan Beach CAIn Manhattan Beach real estate, though, Summer is not typically a period with a lot of absorption – of housing inventory. Listings come out less frequently, and sell more slowly. Summer has a lazier pace, befitting the season.

Now, with quick sales on listings like this one, 2509 Walnut (asking $2.799M), Summer 2016 is breaking from tradition. [UPDATE: 2509 Walnut has come back to market after a brief escrow.]

This year – well, these last 2 weeks or so – there's a lot of absorption. Inventory is dropping drastically because sales are happening fast – all of a sudden.

It's like someone shouted, "Everyone in the pool!" And everyone jumped at once. This is Spring-time-like action.

Inventory had, until recently, continued its gradual, seemingly inevitable rise to new heights, peaking at 141 listings on July 22. (See our post, "Wow, 141" from then.)

Today it's down 30 listings to 111.

To be clear, this is because new deals have outpaced new listings by a lot.

It's not listings dropping out or going on hold. It's not because "no one is listing these days" and buyers are scraping the bottom of the barrel. There's just a lot going on all at once.

Now, this does not have to be a complete shock.

In mid-July, just before that inventory peak was hit, in our MB Market Update for 7/15/16, we offered some data (with charts & graphs), and concluded:

"Put it in bold type: More buyers have bought homes in Manhattan Beach this year than last year. Doesn't that say something?"

But, yes, there were also "mixed signals" that we pointed to in the same post. Inventory rising... buyers getting skeptical... a sense that the market had leveled off. And then: "Everyone in the pool!"

Watch for more of these mixed signals in coming months as our market tries to figure itself out.

Right now, the signal is: Buy.

To show you what's selling, here's an automatically updated list of the 24 most recent sales (new escrows) in MB:

#mb-pending-blog#

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