MB Market Update for 10/15/18

By Dave Fratello | October 16th, 2018

We're seeing decent action in the market here in mid-October as the hot winds start to blow.

But there's also been a burst of inventory in the past couple weeks, with our total of 109 actives on 10/15 actually one greater than 10/15 last year.

And the trend in inventory through the first 2 weeks of October has reversed from last year. Last year, inventory dropped by 14 listings between Oct. 1-15, mainly due to sales (new escrows), while this year, it's up by 7.

That 2-week shift is not enough to prove that the negative chatter out there is correct, but it's something.

Meantime let's look at some of the notable sales from this period:

130 19th Street Manhattan Beach CA130 19th (4br/5ba, 4200 sqft.) is a lower walkstreet new modern. It's just closed for $8.085M.

This sale closed 53 weeks after the home first hit the market, in Oct. 2017, asking $9.250M.

Back then, it seemed like a mid-to-high 8's kind of property, but now, as it turns out, it was a low-8's property. (Or something happened in the market in the past year - or both. Discuss.)

As is often the case with these walkstreets, the home's views were mainly from the front and back corners, but those views were good. There was a commitment to a very open floorplan, especially the top floor, with essentially no walls.

Still our favorite feature: The top floor's rear-deck covered outdoor room, which is sizable to really spread out in, and which connects in a very interesting manner to the kitchen area - sliding doors disappear into the wall, and a countertop that's party indoors, partly outdoors, has a segment of window that also pulls back into the wall. The result is a unification of that outdoor room and the kitchen. Very compelling.

412 8th Street Manhattan Beach CA412 8th (5br/6ba, 4425 sqft.) is "just another" family walkstreet sale over $6M.

They aimed for the record books with a list price of $6.750M, and actually made a deal within a month.

A big number certainly seemed possible, with a newer (2012) build, great styling and outstanding interior decoration that made the home a showpiece.

The top sale ever on the family walkstreets was 337 7th (4br/5ba, 4235 sqft.) earlier this year at $6.900M. That was a resale but also a home drenched in awesome interior decor, boosting an already super house.

In May 2017, new construx at 325 6th (4br/5ba, 4200 sqft.) closed for $6.550M.

Those were both by one builder, but now 412 8th shows that homes by other builders can play at that level, too.

228 3rd Street Manhattan Beach CAAlso notable in the South End, a lot sale at 228 3rd has come in at $4.125M. That's a far cry from the $4.995M start price, which reflected some sense that the dated structure on site could perhaps have value as a major remodel.

But $4.125M is also quite a step down from the most recent comparable lot sale, 229 8th at $4.450M (Feb. 2018).

Before we assume that the market for plots south of the pier and (just) west of Highland is declining, though, let's be clear about a concern for 228 3rd. The rear portion of the lot drops off somewhat steeply, meaning that a new home's 30' height max will not be 30' from the walkstreet level. It'll be lower, and there could be some impact on overall # of stories and home design.

The topography held back some builders and others, though, of course, the inherent appeal of a South End walkstreet is still enough for a great number.

3009 N Poinsettia Avenue Manhattan Beach CAWe could almost do an all-Sand-Section update, but we're happy to make a quick nod toward 3009 N. Poinsettia (4br/4ba, 3775 sqft.), a darling custom Cape Cod that had been dramatically improved by great interior decoration. (There's our 3rd mention in this post of great values coming from interior design.)

Even neighbors are saying, wow, $4.100M for a nearly 10-year-old house... but hey, it's great for us, too!

But people said about the same thing 2 years ago when the same house sold for $3.700M, besting new construction at that time, too.

Perfect house, great street, jaw-dropping design... that's worth a premium. We know because the market keeps saying so.

Here's the rest of our local real estate market update report for the period ending 10/15/18:

  • 109 active listings as of 10/15/18 (+7 over 9/30/18) 
  • 79 SFRs (+7)
  • 30 THs (flat)

See the Inventory list as of 10/15/18 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 24 actives (+2)
  • Sand Section: 52 actives (+4)
  • Hill Section: actives (-1)
  • East MB: 25 (+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 10/15/18."

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