MB Market Update for 6/30/18

Beginnings and endings. Closings and openings.

It can be fun to mark the finish of one thing and the start of something new.

Like, for instance, the start of the second half of the year.

That's also the close of the first half of the year.

Here at MBC, that's going to mean it's time to start looking at data from the first half, and comparing it to prior years to help gauge how 2018 is going.

On occasion of this period's MB Market Update, we'll look first at inventory data.

Remember that both 2016 and 2017 had seen inventory running substantially higher than the prior 3-4 years, raising some question about potential impact on prices. However, the sales pace and totals were running hot, suggesting that any "extra" inventory wasn't softening up the market much.

Entering 2018, inventory began lower and stayed below 2016 and 2017 for a spell. All of a sudden, in mid-April, inventory jumped above 2017 levels. (See "Did You See Inventory Jump?" from back then.)

As you see in our chart now, that was a blip. Inventory for 2018 has been above 2017 levels only once. In mid-June, at 102, inventory was the same as in 2017.

By month's end, at 93 listings now, we're far lower than 2016 levels (131) and quite a bit below 2017 levels (111).

We'll explore more about inventory later, along with posts about sales trends and prices.

Looking at some notable sales from late June:

A lot seemed to happen on two prime Tree Section streets, Palm and John. For instance, a smallish but slick mid-century modern remodel at 2413 Palm (3br/3ba, 1800 sqft.) got almost all of its asking price, closing for $2.450M.

Why, it was just 3 months ago that neighboring 2310 Palm (5br/4ba, 3133 sqft.) had closed for $200K more at $2.650M.

Now, 2310 is much further from busy Marine Ave., newer and 75% larger. But, whereas the mid-century showpiece at 2413 Palm got you to see and fall in love with its charms, despite its limitations, the '06 Spanish at 2310 had challenged buyers and made it easier to get focused on the home's basic design flaws and need for updates. Together, these 2 neighboring homes say a lot about the vagaries of real estate pricing, and what truly motivates buyers.

Meantime, a more typical but modernized early-2000s custom Spanish at 1804 Palm (5br/4ba, 3150 sqft.) has resold only a year after trading for $3.000M. Last year's buyer gave the kitchen and some flooring much-needed upgrades, among other tweaks. This year's value? $3.300M.

And a lot sale on nearby John at 1817 John led to multiple offers. This lot is on the higher side of John, with mostly flat topography and a backyard on the sunny western portion.

Asking $2.350M to begin, the sellers got more: $2.525M.

Finally, it was also during this period that new construction at 1904 Palm (5br/5ba, 3600 sqft.) made a deal, after a cut to $4.250M.

Over in East Manhattan, we saw huge 1616 Gates (5br/6ba, 5070 sqft.) eclipse $3M with a sale at $3.050M, while a large, if experimental, 1980s house at 1437 3rd (5br/5ba, 4065 sqft.) with a full 7500 sqft. lot got exactly its asking price of $2.250M.

In the Sand Section, on one our favorite gaslamp district streets, a 1-1/2-lot custom 1980s Spanish at 545 23rd (4br/4ba, 3235 sqft.) went over asking at $2.925M.

Here's the rest of our local real estate market update report for the period ending 6/30/18:

• 93 active listings as of 6/30/18 (-9 from 6/15/18) 
• 72 SFRs (-3)
• 21 THs (-6)

See the Inventory list as of 6/30/18 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

• Tree Section: 13 actives (-2)
• Sand Section: 52 actives (-7)
• Hill Section: 10 actives (+3)
• East MB: 18 (+5)

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 6/30/18."