One-Third of Listings Now Have Cuts

By Dave Fratello | March 12th, 2019

We saw a few higher-priced listings take cuts recently, and got to thinking: How common is that?

It's only March, early in the season. What's with the cutting, so soon?

Those big cuts we noted:

1721 Elm Avenue Manhattan Beach CA1721 Elm (5br/5ba, 4250 sqft.) is an oversized Tree Section Mediterranean that hit the market in mid-January, after some off-market promotion late last year.

Apparently not gaining traction, they cut $500K suddenly on Sunday to $3.000M.

A quick 14% chop like that is a bit stunning. It's the highest cut, percentage-wise, among those we've seen recently, and ties for the biggest drop from start.

3211 Poinsettia (5br/4ba, 5500 sqft.) is a much-oversized Tree Section home on a 9200+ sqft. lot.

The sprawling, custom 1980s build has some upgrades, but also some ambitions. They began last year at $4.695M.

With a recent $100K cut, they're down $500K total across the listings to $4.195M.

Down by the beach on a flat walkstreet, it's a similar story.

409 4th Manhattan Beach CA409 4th (3br/3ba, 3150 sqft.) is a warm, custom 1990 Spanish with upgrades.

After a few months on market last year, beginning at $4.499M, they packed it in for the holidays.

409 4th came back "new" to market in January at $4.299M, but has just cut $300K to $3.999M.

That makes for $500K in total cuts from the first list price.

Back in the Tree Section, 3305 Pine Avenue Manhattan Beach CA3305 Pine (5br/7ba, 5700 sqft.) is the double-lot Tree Section paradise we recently raved about in "Compound Rapture."

After a month on market, they've cut $300K to $7.500M.

1215 Fisher Avenue Manhattan Beach CANew construction near downtown at 1215 Fisher (5br/7ba, 5400 sqft.) began in January at $7.995M.

After 6 weeks, they took very precise cut of $305K to precisely $7.690M.

So, that's a couple $300K cuts and three $500K cuts.

That's not typical, of course. You need to be at a pretty big starting point to be cutting $300K-$500K, ever.

But we do find that 32 of 101 active listings as of Tuesday afternoon have taken cuts of some size; essentially one-third of all the active inventory.

Slightly more than half of all inventory has 30+ DOM at this point, and all of the cuts are on properties with 30+ DOM.

As we were taking note of the relative new-ness (word? - Ed.) of most Manhattan Beach home listings, we also thought to update you on a stat from a month ago.

That stat was in a post about homes selling in 2019 that hadn't been able to find buyers in 2018. (See, "Couldn't Sell in '18, Now Sold.")

We found then that almost 7 in 10 listings on the market were hardly "new." They had tried to sell in 2018, too.

This was more than a week after the Super Bowl, but recycled inventory was outnumbering truly new listings.

Now, nearing mid-March, the proportions are more normal.

Today 55% of active listings are new to market this year.

The returning listings are being pushed more and more to the back burner.

And some are cutting, because they do actually mean to sell.

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