East MB Sales Took Cuts

By Dave Fratello | December 29th, 2015

There have been precious few examples of inventory "bulges" in Manhattan Beach in recent years. Mainly, the story – and the complaint – has been about a lack of choices for buyers.

But in East Manhattan Beach this Fall, there was a (temporary?) growth in inventory of comparable homes at comparable prices. As we detailed those listings in "What's (Not) Happening in East MB?" here at MBC, we called the group "a fairly diverse set of 7 comparable homes, all priced between $2.2M-$2.4M or so, competing for buyers' attention."

Now, some have sold.

And what economics suggests might have happened has happened: Prices dropped in response to the expanded supply.

Sold Listings (3)

1561 Gates Avenue Manhattan Beach CA1561 Gates (5br/6ba, 4375 sqft.) (pictured) is a 1980s Mediterranean that came to market just as our post went up in October asking $2.450M. (See our open-house post from then for more.) Lot size: 7500 sqft.

Now, this one has just closed for $2.236M (-$214K/-9%).

1751 Curtis (5br/4ba, 3750 sqft.) is a 1980s original that got a 100% total interior remodel that looked great. (Our first photo up above is of this listing.) Lot size: 7500 sqft.

It began mid-Summer at $2.550M and came down a bunch to sell at $2.150M (-$400K/-16%). 

1150 2nd Street Manhattan Beach CA1150 2nd (4br/4ba, 3700 sqft.) is a 1980s Spanish up a long flag-lot type driveway up off of busy 2nd Street. Originally asking $2.399M, they needed more than 6 months to make a deal.

Closed price was $2.218M (-$181K/-8%).

Interestingly, this home, largely the same in 2015 as it was at the time of its last sale, in July 2013, sold for "only" 11% more than that prior sale. (Prices, in general, have risen faster.)

To summarize: Among the sold listings, you see that:

  • all began by asking $2.4M or more,
  • all chopped $200K or more, and
  • sales closed in the narrow range of $2.150M-$2.236M.

Unsold Listings (4)

Looking back at that October post, here's what has happened with the balance of the 7 listings we referenced at the time:

1653 Curtis (6br/4ba, 4400 sqft.) (pictured) is also a 1980s original, with an updated kitchen and nice pool. Lot size: 7500 sqft. It came to market at $2.399M but ran only a month before quitting in early November. Might it be back?

1643 5th (4br/3ba, 3100 sqft.) is a 1970s original that's very different from the others referenced above in size & style. Still, with 4br and 3000+ sqft., it qualified as competition and as a target for a typical family looking in Manhattan Beach. Lot size: 7500 sqft. Listed for $2.199M, it quit in October after just a few weeks.

1305 11th (5br/4ba, 3700 sqft.) is a year-2000 build in a contemporary style. Lot size is almost 5000 sqft. It remains on the market today at nearly 100 DOM, asking the same price as at the beginning: $2.395M.

1765 Curtis Avenue Manhattan Beach CA1765 Curtis (5br/4ba, 3875 sqft.) (pictured) is another 1980s original with some updates, in this case to the kitchen and master bath, principally. Lot size is 6000 sqft.

On its second listing this year, in October, it was asking $2.395M, chopping to $2.195M before attracting a buyer (-$200K/-8%). It fell out of escrow shortly after this post went online.

As we look back to that mid-October post, there was one point we neglected to make. At the time, there were literally no homes in escrow east of Sepulveda priced at $2M or above. Obviously, a few found buyers after that post.

1649 9th Street Manhattan Beach CAThere are now 3 East MB homes in escrow at $2M+, one being a new construction priced over $3M, one being 1765 Curtis (mentioned above) and the last being 1649 9th (6br/5ba, 4450 sqft.), which listed at $2.499M and made an immediate deal in late November (late November!). 

UPDATE: 1649 9th closed for that $2.499M price shortly after this post went up online.

The two newest entrants to the market at around this price point are 907 Harkness (5br/4ba, 3435 sqft., $2.295M) and 1321 5th (4br/4ba, 3500 sqft., $2.599M).

You'll see a total of 10 active listings east of Sepulveda today priced over $2M, many well above.

What happens with those will have to be another story.


UPDATE: It's a good thing we no longer print MB Confidential on paper. After this post first went up and was emailed out, two properties mentioned in the post had changes in status. The post is updated to show now that 1765 Curtis fell out of escrow and 1649 9th closed.

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