How Perspective Changes

By Dave Fratello | March 25th, 2014

About 3 years ago, the buyers' market in Manhattan Beach was winding down. A firmer, more optimistic market was taking shape. It would gradually become the current rally, or whatever you want to call today's rapidly rising market.

In June 2011, we were accustomed to seeing homes trade around their 2004 values. And yet, 319 S. Poinsettia in the Hill Section sold then for a notable markup over its 2004 sale price. That got MBC's attention at the time. (See "A Big Markup Over '04.")

The 2004 sale of the home, when new, was at $2.137M. The resale in a (supposed) buyers' market was for $2.495M, the list price, which had seemed ambitious at the time.

A 17% bump over an '04 price back then was an outlier.

Now the home is back up at $3.999M (can we call it $4M?), looking for a markup of 60% over acquisition in 3 years.

But now, how will the market view a $4M listing in the Hill Section?

Its only direct competitor on the public market in the Hills is a comparably sized, luxe, ocean-view home at 853 6th, asking $4.950M. The lots and home sizes are close to identical, even if the homes are very different. So it's $1M less to be down the hill and along Boundary Place on a downsloping lot.

Most of the off-market properties in the area that area being discussed are nearer to $5M, also.

So if you just want to relate this one to what else is available, maybe it looks OK.

What definitely looks OK: A walking-away profit of $1.3M for buying in at the right time – at whatever price... if the sellers can pull that off.

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale