Manhattan Beach Market Update for 7/15/20

By Dave Fratello | July 17th, 2020

Recent trends continued, and that means two things in the latest biweekly data on Manhattan Beach real estate:

> Inventory is up - really up, and

> New purchase contracts continue at a fast pace.

So it's the same as we said just the other day: Inventory (137 at mid-July, 139 at this writing) is jumping to meet higher buyer demand.

This makes for a very unusual July, here in a very unusual year.

July is typically when local real estate goes on autopilot, almost quieting down for several weeks till school begins. Summer is usually sluggish; only the post-Thanksgiving holiday season has fewer new escrows.

Our chart here shows how hot June through early July has been this year.

We combined 6 weeks' worth of data on new purchase contracts/new escrows. We see, once again, that 2020 is leaping out ahead of other years in this cycle.

There were 24 new deals in the first half of July this year that contribute to this big total of 79 new deals over 6 weeks.

That 24 deals in these 2 weeks was equaled just once recently, from July 1-15 in 2015. 

The 2-week total is 9 more than last year, double the 2018 total and much more than 2016 or 2017 had in the same half-month period.

New escrows are a good indicator that the market is moving.

However, there were several properties that fell out of escrow in the period - a trend we hadn't seen much since around April/May. And oddly, 3 of 6 properties falling out were in the Hill Section:

927 N Dianthus Manhattan Beach CA> 927 Dianthus (4br/3ba, 3750 sqft., $3.495M) (pictured)

> 600 Anderson (3br/3ba, 2025 sqft., $3.579M)

> 943 Duncan (4br/5ba, 4900 sqft., $2.999M)

> 2701 Maple (4br/4ba, 4000 sqft., $2.899M) (back in escrow 7/17)

> 6 Arbolado (4br/3ba, 3300 sqft., $2.599M)

> 1618 9th (5br/6ba, 4550 sqft., $3.150M)

Every broken escrow has its own dynamics, so it's hard to read into this finding.

Early in the (first) COVID-19 shutdown, lots of deals went off the rails due to employment and financing issues. Some buyers just changed their minds.

Once the market warmed up again, failed escrows seemed to slow to a trickle. Now? There's no one obvious driver.

There was quite a flurry of closings in July, reflecting the activity in the market in May-June.

329 4th Street Manhattan Beach CAOne was 329 4th (3br/2ba, 1700 sqft.), a fully remodeled South End walkstreet cottage.

Dave's clients got the property for $3.787M.

Recent, prior purchases of the same home:

June 2018: $3.975M

June 2019: $4.000M

Not only was this year's purchase price below the prior two sales, our buyers benefited from considerable remodeling done soon after the 2019 purchase.

Here's the rest of our local real estate market update report for the period ending 7/15/20:

> 137 active listings as of 7/15/20 (+26 from 6/30/20) 

> 110 SFRs (+23)

> 27 THs (+3)

See the Inventory list as of 7/15/20 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

> Tree Section: 31 actives (+6)

> Sand Section: 66 actives (+13)

> Hill Section: 11 actives (+4)

> East MB: 29 (+2)

We're also providing a report on closed sales by region of MB.

Sales data, including PPSF for all properties, are organized by sub-region of Manhattan Beach.

Here's a link to the spreadsheet: "MB Pending/Sold as of 7/15/20".

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