MB Market Update: 11/15/14

By Dave Fratello | November 19th, 2014

It's time for one of our twice-monthly updates on market activity, with updated spreadsheets on inventory and sales.

As we perused the newest data, we could not help but notice something: Discounts.

What's that? In the middle of this runup, people are sometimes paying less than asking? The shock.

It starts with overeager sellers, like the (former) owner of the 90s townhome at 512 Highland (3br/3ba, 2135 sq. ft.).

It launched in late August at $2.789M, despite being very much "of its period" (per our review) rather than super-updated, and having a dubious 3rd "bedroom" (no closet) sharing the master bath. (A feature we called a "jack-and-jill master bath," and one we hope not to see again.)

That would have been a $1.1M markup over the 2007 acquisition price (hello, last bubble), and did not seem credible. It wasn't. After lingering and cutting and lingering some more, they got $2.200M. Still a handy profit, just not $1.1M.

Dave was involved in another sale where there was a nice discount off the start.

That was at 329 11th (5br/5ba, 4100 sq. ft.), new construction right near downtown.

The developers put a very big pricetag on it: $4.750M. The property looks great, was staged to look even better, and had undeniable assets.

But there was an intangible: How would buyers react to the location?

It's a bit polarizing – to be so close to downtown isn't everyone's cup of tea. (We sided with being in town in "At the Beach, Of the Town.")

Our buyers came in almost 10% under the list price in the first week after the property was staged, and got it.

Final sale price: $4.350M.

We also took note of the discount of the year (perhaps): $1.095M off the top at 4404 The Strand.

List: $5.995M. Sold: $4.900M. Discount: 18%.

In this case, it helped that the buyer hired the listing agent.

That's a practice we generally frown on, because buyers usually don't get the screaming deals they think they'll get from "going direct."

But exceptions sometimes prove the rule.

Here, it would appear that the listing agent knew there was plenty of fat in the list price, and guided the buyer in for a landing with an extra million bucks in his pocket. In this case, dual agency looks like it provided a service to both parties. The buyer paid less and the seller didn't lose a solid buyer.

Double commissions on $4.9 million will make your day as well.

Here's our report from the period of 11/1-11/15:

  • 53 active listings as of 11/15/14
  • 34 SFRs (+3 from 10/31/14)
  • 16 THs (+3 from 10/31/14

See the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 8 actives (-1)
  • Sand Section: 18 actives (-1)
  • Hill Section: 6 actives (+1)
  • East MB: 23 actives (+1)

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

Sales are organized by sub-region of Manhattan Beach.

Here's a link to the spreadsheet: "MB Pending/Sold as of 11/15/14."

In our report on closed sales, we provide the past 6 months' worth of sales by region. This is the typical window of time used by appraisers. The spreadsheets are useful to anyone tracking the market or trying to estimate the value of a home for purchase or sale.

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale