MB Market Update for 5/15/16

By Dave Fratello | May 19th, 2016

It was only the beginning of April this year when 100+ real estate listings in Manhattan Beach became "the new normal."

We can prove that, because we posted about it – actually on March 31. (See the aptly titled, "MB Real Estate Inventory Hits 100+.") Probably better that it wasn't an April Fool's post.

Manhattan Beach Real Estate Inventory Chart May 15, 2016100+ is just part of the environment now. And, yes, here, with our long, busy days here on the front lines, it feels like forever already.

By the time of our May 15th data capture, inventory was still over 100 at 111. As we go to post here on May 19th, inventory is reaching for 120, having just hit 116.

As you see in our chart, this does not look anything like 2013-2015. We had 57 listings citywide on May 15 last year – meaning this year, we're nearly double last year.

This is a good time to revisit some observations found in our MB Market Update from early April. We offered a set of observations that we'd heard in realtor chatter about the growing-inventory trend. Bullet points only here. (Read the full post for detail here.)

  • We're moving toward a "normal" market.
  • There are more new listings coming.
  • Inventory could actually drop, fast & soon.
  • There is nothing new or changed in the fundamentals in MB.
  • Watch new construction.
  • You have to break down the market into segments.
  • Historically, MB does not drop first.

Well, just one statement in there – overheard, you know, not this writer's opinion – was clearly wrong wrong wrong: "Inventory could actually drop, fast & soon." Maybe they meant in December?

Buyers, though... This is the dream we've talked about for 3+ years. There are choices. Seems like there's time. You might have some leverage with a seller. And this is before we get to Summer. Sellers need to understand how their offerings fit into this new environment.

724 36th Street Manhattan Beach CALooking at our market update data, if there's one screaming deal of this period, it's over in the Trees at 724 36th (4br/4ba, 3350 sqft., on a 5200 sqft. street-to-alley lot). It's a fixer house whose layout could use some tweaks. Launched at $2.650M in March, it was obviously high, and cuts happened.

But the closed sale at $2.152M put it in a different league. That was a quick $500K and -19% adjustment to make a deal happen. (The full extent of the price cuts is obscured by a bogus re-list from the $2.650 listing.) That's a lot of house for not too much more than land value.

1208 Manhattan Avenue Manhattan Beach CAWe also paid close attention to the downtown SFR sale at 1208 Manhattan Ave.

This 80s custom build has 3br on the middle (entry) level and a very spacious top floor with high ceilings and ocean views. The kitchen and a living room are tucked in back. The home's right in the thick of downtown.

List price was $4.3M, but they sold for a tad under $4M at $3.988M. Word is that it might be remodeled (which is how we saw it), but that the whole structure might come down and a new home may get built there instead. The 2260 sqft. lot would afford a big, but not maximum, size house in a prime location. One to watch.

Here's the rest of our local real estate market update report for the period ending 5/15/16:

  • 111 active listings as of 5/15/16 (+8 from 5/1/16)
  • 90 SFRs (+6)
  • 21 THs (+2)

See the inventory list as of 5/15/16 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section: 30 actives (+5)
  • Sand Section38 actives (flat)
  • Hill Section11 actives (-3)
  • East MB: 31 actives (+5)

One trend we're noting in East Manhattan: There are now, suddenly, 9 active large SFRs priced between $2.7M-$3.0M. So far in 2016, we see a total of 3 closed sales in East MB in that price range.

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 5/15/16."


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