MB Market Update for 11/15/16

By Dave Fratello | November 17th, 2016

As Turkey Day approaches, there's less and less local housing inventory to consume.

A traditionally slower season is dawning, and that means we're under 100 listings now. The market has been below that point since late October.

There are sales happening – it's not a bad clip for this time of year. You might expect buyers to go hibernate, but they're actually taking what they can get.

We're even aware of recently canceled listings going into escrow soon after coming off the MLS. (Imagine the buyers: "Wait! Wait! I liked that one! Bring it back!")

It's time to offer a post-Summer update on sales at the higher end. You'll recall that MBC made the point a few times as Summer rolled along, and as everyone came back, that there were simply no sales over $4.0M for the longest time. Now, here are the very recent closed prices on several that did exceed $4M:

1808 Agnes Road Manhattan Beach CA1808 Agnes (5br/5ba, 4825 sqft.) – Tree Section new construction with a basement on a prime Martyrs block.

The first listing for the property pre-completion was at $4.850M. A new version of the MLS listing began at $4.699M and only slowly dropped to the last-seen price of $4.475M, with 4+ months on market.

Closed price: $4.380M (-10% from start).

625 17th (4br/4ba, 4375 sqft.) – Tree Section/Martyrs Area, a delightful custom build (2005) on a large lot on a cul-de-sac private block.

The property tried in Summer, overpriced at $5.2M. It came back in Fall at $4.495M and drew multiple offers.

Closed price: $4.600M.

921 9th Street Manhattan Beach CA921 9th (6br/5ba, 4900 sqft.) is a newer (2012) home with a large lot (7500 sqft.) that now features a pool installed by the first owners.

Launched much too high at $4.999M in June, the listing made price adjustments down to $4.599M publicly.

Offers came in, but they didn't all work out.

One did. Closed price: $4.200M (-16% from start). (That's exactly where we pegged it in June, in private discussions with clients.)

2001 John Street Manhattan Beach CA2001 John (5br/7ba, 4865 sqft.) – Tree Section new construction on a prime near-Martyrs block.

The quality here is something special, a cut above some of the other new homes we've seen come out this year.

It launched at $5.475M (really?) and quickly corrected to $4.999M.

After a cut to $4.749M, there was immediate action.

Closed price: $4.650M (-15% from start). (Dave's clients got it.) This was also where we pegged this one when it first came to market.

644 33rd Street Manhattan Beach CA644 33rd (5br/5ba, 4450 sqft.) – Tree Section north of Valley... a onetime spec "Tuscan" that traded last in 2013.

In its radically (really!) revamped, glam Hollywood modern look, we called it here "a total knockout and surprise."

The asking price of $5.000M would have been something else in the Trees.

They came close. A fairly quick deal came together.

Closed price: $4.600M. Did not see that one coming.

The other big, big sale since our last MB Market Update was in the Sand Section. 

232 6th Street Manhattan Beach CA232 6th (5br/7ba, 4325 sqft.) – Sand Section new construction that we've called "glamorous" and "fabulous" with big views on a walkstreet south of the pier.

The launch was $9.000M.

Closed price: $7.385M.

Now, neither here nor there in terms of "big dollar" sales, there is one we wanted to mention here, to "close a loop," as it were.

710 Manhattan Beach Boulevard Manhattan Beach CARemember the MB Blvd. condo that came up for auction recently?

That was 710 MBB (3br/3ba, 1675 sqft.).

Back in September, in "Auctions Aren't Always Distress Calls," we took note of the unusual "luxury auction" gambit that they were trying at 710 MB Blvd.

The idea was that a start price of $1.475M would be such a screaming deal that people would come rushing in, trying to get it for more, and more, and more.

Oops. That didn't work, because the unit needed so much updating. It was styled for yesterday and worse for wear. It didn't scream "must have." Rather, it invited buyers to calmly get out their calculators to estimate the cost of updates.

After price cut in the "auction" "start price," to "only" $1.375M, and a postponement of the original "auction," they finally drew offers.

Closed price: $1.450M. Yes, $25K under the "auction start price."

That's actually low for the area, size and ocean views. The outgoing owners (they were "sellers," though for months you couldn't tell) didn't make any friends among their neighbors in the way they managed this and threatened values with their new comp.

And that "luxury auction" tactic?

Not looking like the wave of the future here.

Here's the rest of our local real estate market update report for the period ending 11/15/16:

  • 90 active listings as of 11/15/16 (same from 11/1/16)
  • 77 SFRs (-1)
  • 13 THs (+1)

See the inventory list as of 11/15/16 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 21 actives (-6)
  • Sand Section: 31 actives (+1)
  • Hill Section: 13 actives (+3)
  • East MB: 25 actives (+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 11/15/16."

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