Breaking the High-End Ice

By Dave Fratello | February 28th, 2019

There's this buzz about how things are slow at the high end of the market.

And by high end, we don't mean the $2M-$3M range, where there are 15 properties now in escrow.

No, let's look at the $4M+ range for a moment. There are 5 properties under contract, 4 from this year:

216 2nd Street Manhattan Beach CA216 2nd (4br/4ba, 2750 sqft.) is a custom '07 modern build on a corner/walkstreet lot with good views.

Purchased for $4.350M back in '08, it was listed last year at $5.795M down to $5.495M.

A new listing began in November last year with a new agent at $4.688M, where it sat for 100+ DOM.

(If we're honest, almost any listing that begins 2 weeks before Thanksgiving is asking for 100 DOM.)

This one's newly in escrow, although we have some questions about whether it will have appreciated much over 11 years. It would be unusual for a Manhattan Beach property not to do so.

We'll have to see that sale price, but the last list was only 7.7% over acquisition.

2009 Pine Avenue Manhattan Beach CA2009 Pine (5br/5ba, 3600 sqft.) is artistic new construction in the Trees.

The new home with a basement was, as we said once, "just-daring-enough" in both matching and going beyond  current trends in Tree Section new construction.

Asking $4.150M, it made a deal within 4 weeks.

There are also:

221 Homer (4br/4ba, 2670 sqft.), last at $4.849M.

424 2nd (4br/6ba, 4350 sqft.), last at $4.695M.

220 11th, an old SFR downtown that's been stuck in a "zombie" escrow since May 2018 (list: $4.500M).

The bigger news is above $8M.

814 10th Street Manhattan Beach CAThere's the Hill Section estate-style home at 814 10th (6br/8ba, 8950 sqft.), with pool and cabana and So. Much. Space. You could get lost in there.

The 2009-built home on a 12,000 sqft. lot began in August last year at $9.550M, then cut to $8.995M in October.

This week, they made their deal.

But that wasn't the biggest deal of 2019.

Two were bigger.

On Jan. 4, the waterfront listing of a dated home/land value property at 816 The Strand (5br/5ba, 2800 sqft.) went into escrow.

A week later, it sold for $11.775M.

120 5th Street Manhattan Beach CAAnd the lower walkstreet home at 120 5th (4br/6ba, 5000 sqft.) found a buyer this year, too.

They tried briefly last year, and had plenty of people kick the (expensive) tires.

In mid-January, they re-launched asking $9.925M.

The sale price just 2 weeks ago: $9.600M.

Hop into the wayback machine and we'll see what 2018 was like at this time.

Aha, it says here that in the first 2 months of 2018, there were no sales higher than $5.600M.

This year, there are 2 closed sales at higher prices.

Total dollar volume, meaning the added-up prices of all homes sold, for Jan.-Feb. 2018 was $104.8M on 40 sales.

For Jan.-Feb. 2019, so far, we're at $95.3M on 36 closed sales. (These figures could change if any pending sales close officially on the 27th/28th and post to the MLS later.)

Last year at this time, there were 4 active escrows at $4M+.

This year, there are 6 at $4M+.

From that data, you can tell either story: A slight dropoff, or a slightly better year...

Or maybe try "nothing so different as to make for big news just yet."

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