price cuts

There are currently 156 blog entries related to this category.

1304 Lynngrove Drive Manhattan Beach CAIt was somewhat more than a year ago when we expressed surprise at how 1304 Lynngrove was being listed.

The start price: $3.199M.

This, in the "affordable" Manhattan Beach neighborhood of Liberty Village, was a serious shocker.

With respect, on the blog here we said that that's the kind of pricing that can "make markets" and/or "could reshuffle all thinking about the area." (See "Pushing $3M in Liberty Village?")

To date then, there had never been a home sold in Liberty Village over $2M, and here they were shooting past $3M. Wow.

(In October 2015, 1805 Faymont [5br/4ba, 3500 sqft.] became the highest-ever Liberty Village sale east of Redondo Ave., at $2.060M.)

1304 Lynngrove Drive Manhattan Beach CA1304 Lynngrove was only in framing stages at the time of its first listing at $3.2M, so

Over the past 7 days, we've seen 11 Manhattan Beach listings cut their prices. (The day's not through yet!)

Meanwhile 18 new listings have come to market, and inventory is up to 104 as we write – a new, recent high that may well be broken by Friday. [Update: Inventory was at 105 by Friday morning.]

Each of the price-cutters has a bit of a different story to them. Let's take a look at those.

The newest cuts at the time of this post were both made on a new TH development in East Manhattan. 

1408 15th Street Manhattan Beach CA 1408 15th (4br/4ba, 2600 sqft.) is now priced at $1.997M, a total of 10% below the $2.229M start price.

Its companion unit, 1406 15th (4br/4ba, 2500 sqft.), is down 7% from start, at $1.880M.

An El Porto duplex (we're shorthanding it here) at 4016 The Strand made

There's not yet a unified theory (or even hypothesis) as to why, exactly, Manhattan Beach real estate inventory has been growing so noticeably this year.

One logical place to look for answers is in the question: How many homes are actually selling?

If we've got the mathematical formula correct here, fewer sales would mean that more homes would remain on the market at any given time. (Does that sound right?)

And, lo, the data do show that the pace of sales in Manhattan Beach has slowed. 

We looked at MLS-reported closed sales for two different stretches of time: Jan. 1-March 31 of each year (2012-2016), and Oct. 1 (prior year)-March 31 (current year).

Looking at the first quarter or Q4+Q1, the data show the same thing: The just-concluded Q1 of 2016…

It's Spring, and everyone knows to expect more listings.

What you maybe didn't expect was to see so many price cuts this early.

In the 7-day period ending Thursday afternoon, 10 new listings came to market in Manhattan Beach, but 15 homes for sale made price cuts.

One of those cuts was on 221 Homer (4br/4ba, 2500 sqft.), new construction with views.

Homer officially listed March 2 and $100K cut on March 9th, to $4.850M – just one week in.

In fact, 7 of the 15 listings making price cuts this week did so in their first month on the market here.

It's sound strategy. Don't hang around while more inventory is coming out.

By our count Thursday, 27 of the 85 listings on the market in Manhattan Beach have taken price cuts at some point: 31%

Below is a…