MB Market Update for 7/1/16

By Dave Fratello | July 5th, 2016

As we look at recent sales activity for our market update, we reflect...

Oh, to have a good, old-fashioned bidding war.

1809 Magnolia Avenue Manhattan Beach CAThey did recently at 1809 Magnolia.

This reasonably sized, custom-built home (4br/4ba, 3200 sqft.) in East Manhattan is on a sleepy street and sports a very wide lot (60' by 100' deep). That makes for an unusually wide, open-feeling home, and allows for a floorplan with some nice changes from the usual from MB. (For instance, a full-sized guest suite on the first floor opening to the backyard, which took nothing away from the kitchen/great room also in back.)

The design and execution of this 2009 build were marvelous. Everyone saw that. When they posted it for sale in April, the frenzy began.

You can get all of this for $2.300M? Wow! was the market's approximate reaction.

We even had buyers who fully insist on finding a home west of Sepulveda who took an interest.

Quickly, there was talk of multiple offers. By Saturday, it was "maybe we'll get to $2.5 or even 2.6." Sheez, so much for the bargain aspect... 

The flood of offers came. The final sale price came in at $2.689M, fully 17% above asking (+$390K).

It was a classic case of an exception that proves the rule, a phrase which here means: "you don't hear so much about multiple offers and sales over asking price anymore."

Twice very recently, Dave's buyer clients have been involved in multiple-offer situations in MB. In each case, the listing took a few weeks to generate interest, then everyone came at once. In one of those cases, the sale closed $150K under asking, despite the multiple bids. (The other sale is not sealed up yet, but it was not bid up over asking price.) Those, also, were not your daddy's bidding wars.

Now, what do you call it when a seller over-shoots, then over-cuts, then gets over (new) asking price?

1440 5th Street Manhattan Beach CAThat happened in a sale that closed in this period at 1440 5th (4br/3ba, 3050 sqft.).

This 1980s build had some nice updates with an overall feeling of "grandma's house," per one of our clients who liked it. If you're the green-thumb type, it was impossible not to love the backyard flower garden.

The start price of $2.499M was corrected, drastically, just 10 days into the listing. A cut to $2.140M brought it down $359K/-14%. Someone was listening to the market!

Another week passed, and there were offers to consider. Now, the final sale price has posted: $2.225M

You could say that was over asking by $85K (+4%).

Or you could say that was a chop from the start price of $274K (-11%).

And both are right!

Welcome to Interesting Times, as our market (possibly) switches gears.

Here's the rest of our local real estate market update report for the period ending 7/1/16:

  • 131 active listings as of 7/1/16 (+9 from 6/15/16)
  • 114 SFRs (+9)
  • 17 THs (same)

Q: Hey, Dave, wasn't that YET ANOTHER high for inventory?

A: Why, yes. But we thought you were perhaps tiring of the story.

Q: Do you think it will go higher?

A: It's Summer. It's got to go up. The current higher-inventory trend began in August last year.

See the inventory list as of 7/1/16 here, or see the MB Dashboard for up-to-the-minute data.

Active listings by region of Manhattan Beach in this report:

  • Tree Section33 actives (+1)
  • Sand Section48 actives (+8)
  • Hill Section13 actives (-1)
  • East MB37 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 7/1/16."

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