MB Market Update for 11/30/17

By Dave Fratello | November 30th, 2017

432 9th Street Manhattan Beach CAWe've got one month to go before we say goodbye to 2017, and Manhattan Beach real estate sales are moving at a higher pace this year than last.

This year: 394 sales through Nov. 30.

Last year: 367 sales.

Indeed, this year has seen the most sales of any year since 2013 in MB. Yes, prices appear to be adjusting in places, but demand isn't flagging.

While Thanksgiving saw a serious pause in new listings, there were some, especially this week. (Funny timing.)

Nearly half of the "new" listings you'll see on the board now are actually re-lists. Sellers love to reset those DOM clocks rather than just go off the market for a spell.

Inventory has dropped notably each of the last 2 reports, falling by 17 in the last half of November. This is a normal seasonal ebb.

We love to look at recent closed sales, and there were several to love (or give thanks for!) in the later part of November. Up above, for instance, we've included a photo of 432 9th (3br/4ba, 2875 sqft.), an intentionally undersized, super gorgeous walkstreet home. (Do you want to use this moment to reflect on whether 9th is the best walkstreet? Discuss.) It sold only $100K under asking: $4.450M.

1540 Curtis Avenue Manhattan Beach CAWe were also fans of the unique new build at 1540 Curtis (5br/5ba, 4400 sqft.), a home that represented perhaps the best example we've seen in a long time of how you truly can reinterpret the basics of a single-family home in a way that both dazzles and satisfies. The loft-like bedroom ceilings on the 2nd floor make for a completely different experience. Sold price: $3.455M.

That put 1540 Curtis somewhat above the recent crop of 3.3-ish sales of new contrux in East Manhattan. (See our recent post on the topic.)

A bullish Sand Section sale of an oversized corner lot (3330 sqft.) at 600 Highland should lead to new townhomes there down the road. (The old ones there now seem not to have much future.) Closed price: $4.525M.

Looking at 600 Highland's potential, just consider the newly closed sale of a front-unit TH on Highland at 304 3rd for $4.275M. That was built on the same sort of corner lot (north facing, in the case of 304 3rd). Its companion rear unit, 308 3rd, is asking $3.999M.

533 24th Street Manhattan Beach CAA newly closed sale at 533 24th (3br/2ba, 1750 sqft.)  illustrated one of the risks of lingering on the market.

This cute and remodeled cottage by Grand View Elementary began at $2.399M in February, cutting to $2.299M only in May after a very nearby neighbor (537 24th) sold for $2.300M.

The thing is, 537 was almost the same size, definitely built as the same house originally as 533, and had been more recently and flashily remodeled.  

That $2.299M wasn't going to be the value on 533 24th. But the sellers hung on for 4 more months before cutting again. Finally, in October, they tried to spark multiple offers by dropping all the way to $1.999M.

That tactic worked. (Disclosure: Dave had buyers in the mix.) And the sellers did draw the overbids they wanted.

But the closed sale price of $2.076M turned out to be a far cry from expectations and nearly 10% below the neighbor. Wow.

It's not even clear that the home was overpriced at the start or that it was greatly too high for most of its run, although the market had been speaking. As the year wore on, the Sand Section seemed to get softer, and any property with lots of DOM can get punished.

In the end, this was a great get for those buyers, and a cautionary tale for others.

2211 Bayview Drive Manhattan Beach CAThe last closed sale we'll mention is 2211 Bayview at $3.100M. We just mentioned this yesterday (before it closed) in a post on Sand Section sales.

The 2006-built Spanish TH is one of 4 built as a set. Right across the walkway is 2215 Bayview, in the same rear (high) position. 2215 sold in Sept. 2016 for $3.425M, in what seemed a bit of a low sale at the time after a big overpricing issue ($3.699M) and more than 300 DOM.

2211 Bayview tried for a month at $3.549M this year, then another 2 months at $3.449M.

In August, the listing went through a crazy period of cutting $1,000/day for about 3 weeks. (What the heck was that?!?)

They finally settled with a big cut to $3.199M, and even that required 2 more months before a buyer knocked, cutting another $100K.

The end result is a sale 9% below the neighboring, all but equivalent unit, just 14 months later.

Here's the rest of our local real estate market update report for the period ending 11/30/17:

  • 69 active listings as of 11/30/17 (-17) 
  • 56 SFRs (-15)
  • 13 THs (-2)

See the inventory list as of 11/30/17  here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 17 actives (-2)
  • Sand Section: 34 actives (-9)
  • Hill Section: 6 actives (-1)
  • East MB: 12 actives (+6)

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 11/30/17."

Please see our blog disclaimer.

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