East MB: New Construx Shoots Higher, Condos Go Lower

By Dave Fratello | May 14th, 2019

Someone, one of these days, is going to break $4M for a new home in East Manhattan Beach.

1320 9th Street Manhattan Beach CAWith the entry of 1320 9th (6br/7ba, 4900 sqft.) onto the market now, the chances go up again for that $4M mark to be breached sooner, rather than later.

This "Transitional Modern Farm House" begins by asking $4.250M, $51K above a competing listing.

1643 8th (5br/6ba, 4835 sqft.) had begun at $4.199M in early April, and actually had a deal briefly. (It was back out of escrow within 2 days.)

Meantime, 1755 8th (5br/7ba, 4835 sqft.) canceled 2 weeks ago after trying for 5+ months at $4.950M. (Really).

UPDATE: Soon after this post went live, 1755 8th returned with a new agent at $4.550M.

And a construction site known as 1515 Gates (5br/7ba, 7100 sqft.) [yikes, 7100!] is out there asking $4.950M now.

Hey, maybe let's see if someone can break $4M before we go pushing for $5M, don't ya think?

1721 8th Manhattan Beach CATo date, the top East Manhattan new construction sale on a pretty-much-typically-sized lot was 1721 8th (6br/6ba, 4480 sqft.), at $3.950M last October.

The plus lot size (8750 sqft.) for 1721 8th could mean that the crown for new homes on truly typical lots (~7500 sqft.) would belong instead to 1446 18th (5br/6ba, 4700 sqft.), which closed for $3.850M, also last October.

But while builders continue to look skyward, anticipating ever-increasing values, it's a different story in the world of condos at the popular Manhattan Pointe complex.

203 Aviation Place Manhattan Beach CAAlmost exactly one year ago, 203 Aviation Place (3br/3ba, 1750 sqft.) closing for $1.170M after a March 2018 debut on the market.

(That listing was so  long ago, the building isn't even green anymore. It's all been painted blue now.)

There had been multiple offers on 203. So one of the "losing" bidders found a way to buy a different unit in the complex, 213 Aviation Place, for the same price: $1.170M, in a deal arranged off-market.

Voila! The market for Manhattan Pointe units was officially established as $1.170M.

But the latest closings in the complex show that price maybe wasn't right.

311 Aviation Place Manhattan Beach CA311 Aviation Place (3br/3ba, 1750 sqft.) just closed for $1.045M.

That's $125K less than last year's prices. Minus 11%.

And it wasn't easy. The listing racked up 5 months on market over two listings.

The prior two sales in Manhattan Pointe also fell below last year's high bar:

229 Aviation Place at $1.080M (Nov. '18)

211 Aviation Place at $1.075M (Dec. '18)

And this situation may get worse before it gets better.

One of those recent sales is already back on market. (Rarely a good thing.)

Now 229 Aviation Place is asking $1.050M in a resale, as it has been since late March.

You have to worry that a new buyer is going to see that as an opportunity to take advantage, and drive the price down even further.

Off the cuff, we don't recall seeing retrenchment in new construction sales, meaning the latest ones selling for less.

For now, that's only an issue on that little island that's at the very furthest point east in Manhattan Beach.

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