MB Market Update for 11/15/17

By Dave Fratello | November 17th, 2017

As we look at the past 2 weeks in Manhattan Beach real estate, we note one positive change right away: There are fewer homes for sale now than at the same point last year.

On Nov. 15, 2016, there were 90 homes for sale here. Now, 86.

It's the first time since July that 2017 had lower inventory than 2016.

Some of the paring back in inventory comes from sales, some from seasonal cancellations.

What's next for our real estate market in 2018 might be influenced by decisions being made in Washington, D.C., right now, though it is too early to say for sure. (And this is not the place to debate it, either.)

What's clear for now is that the House of Representatives has voted to limit the mortgage interest deduction for new purchases to interest on the first $500,000 of a loan (basically half the current amount), to cap the property tax deduction at $10,000, and to require home sellers to live in a home 5 out of 8 years to enjoy limitations on capital gains taxes, among other provisions.

Ours is one of the pricey coastal real estate markets that was more or less directly targeted by the legislation. Whether there are corresponding benefits for taxpayers to make up for these hits is outside the scope of a real estate blog.

The real estate industry (realtors and builders) is issuing dire warnings about the legislation. We can at least project that buyer psychology here will be impacted if these changes in the tax law go through. TBD.

Back home here, among the notable closed sales in the first half of the month:

712 John Street Manhattan Beach CAIn the Hill Section, a corner-lot modern at 712 John (7br/8ba, 6800 sqft.) closed for $9.400M. It was first listed in Jan. 2016 for $13.500M, and rumor was that they had an off-market deal before that for even more.

A flipper re-do of the ranch house next to the fire station at 1401 11th (3br/2ba, 1780 sqft.) closed for $1.930M, just $20K under asking and definitely above where we'd have projected it.

We were also surprised by the quick flip of the little corner cottage at Marine/Pine, 2416 Pine (2br/1ba, 1030 sqft.). It was acquired in January for $1.250M and has now resold for $1.545M.

620 29th Street Manhattan Beach CAFinally, Tree Section new construction with a basement at 620 29th (5br/6ba, 4750 sqft.) closed for a very healthy $4.650M. (The deal was arranged off-market and posted to the MLS.)

Here's the rest of our local real estate market update report for the period ending 11/15/17:

  • 86 active listings as of 11/15/17 (-8) 
  • 71 SFRs (-6)
  • 15 THs (-2)

See the inventory list as of 11/15/17  here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 19 actives (-5)
  • Sand Section: 43 actives (-4)
  • Hill Section: 7 actives (-1)
  • East MB: 18 actives (+1)

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 11/15/17."

Please see our blog disclaimer.

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