MB Market Update for 1/15/20

By Dave Fratello | January 23rd, 2020

We like to look at data twice a month and focus on interesting sales.

In the first couple of weeks this year, we saw 704 Manhattan Ave. (3br/4ba, 2450 sqft.) close for $4.450M. (The first photo here is from the balcony looking south along Manhattan Ave., a view we find a bit sublime for some reason. See all photos here.)

What's interesting about this trade is that it's only $100K more than the purchase price new in late 2017. That's 2% appreciation over about 2 years.

704 Manhattan Avenue Manhattan Beach CAYou'd be excused for finding that surprising. A nearly new, ocean-view property south of the pier is in a hot zone. Only walkstreets tend to overperform more consistently than a prime location/property such as this one.

And there's another quirk: 704 Manhattan has sold for only $151K more than a recent trade at a comp up on Highland: 814 Highland (4br/4ba, 2600 sqft.), a 2016 build that sold in Oct. 2018 at $4.299M. In theory, a Manhattan Ave. property that's largely equal should sell for a greater premium.

But we also won't overstate the case here. While 704 Manhattan is newer, has all the beachy contemporary style that one expects and a good location, something has always held it back.

The developers shot for $4.999M in early 2017 before sacrificing it for $4.350M late that year.

A similar scenario unfolded in 2019, with the owner shooting for $4.890M and only gradually taking it down to the lower 4's.

It was a December cut to $4.299M that sparked big interest. After all that, it sold $150K higher!

3004 Pacific Manhattan Beach CANew construction in the Tree Section at 3004 Pacific (5br/4ba, 3600 sqft.) closed for $3.100M, $95K below asking but $100K over the neighboring property at 3000 Pacific (also 5br/4ba, 3600 sqft.), which closed for $3.000M in August last year.

Both were developed at the same time on a double lot that was split, but 3000 Pacific presold before completion.

What's interesting here is the Pacific Ave. discount. Since Jan. 2017, we see 31 sales of new construction in the Tree Section of similarly sized homes.

Of those, 19 sold for more than $3.100M, but none were on Pacific.

Of the 11 selling below $3.100M, 4 were on Pacific (including neighboring 3000 Pacific.)

The others were either on Oak or in challenging locations, with one (3604 Walnut, $2.815M) staring at the refinery.

Lest you think we are telling a tale of woe here, though, take one big look east. Once again, and really, wow, once again, there's another new East Manhattan record price for new construction.

1751 8th Street Manhattan Beach CA1751 8th (6br/6ba, 5825 sqft.) has closed for $4.855M, which is only a downer if you thought they were going to get that $5.400M start price.

It was just midyear last year when the first-ever East MB new construx sold over $4M. There were 3 by year's end. Now this one's scraping at $5M. (See "High/Low Sales of 2019: East Manhattan.")

Looking at current inventory, by mid-month, the 66 properties for sale were down from a remarkable 84 at the same time in 2019.

Here's the rest of our local real estate market update report for the period ending 1/15/20:

  • 66 active listings as of 1/15/20 (+6 from 12/31/19) 
  • 54 SFRs (+6)
  • 12 THs (flat)

See the Inventory list as of 1/15/20 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 14 actives (-1)
  • Sand Section: 37 actives (+7)
  • Hill Section: actives (flat)
  • East MB: 11 (flat)

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 1/15/20".

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