Summer of Cuts Begins

By Dave Fratello | June 28th, 2016

Maybe we are in for a long Summer.

Inventory hit 129 on Tuesday, just another new high, but people are still bringing homes to market looking to sell.

527 14th Street Manhattan Beach CAThis, while we enter a season that is typically heavy with tourists but lighter with buyers. That's just Summer for you.

So how will you sell in this environment?

Pricing and patience.

And if you need to, cuts. (Fixing the pricing if the market doesn't respond.)

A word to the wise: If you don't sell at once, and start cutting, buyers who do come are in a mood to negotiate further still. That's how the wind's blowing.

Here's a partial list of recent price cuts (pictured here is 527 14th, noted below) :

Hill Section 

934 Duncan Avenue Manhattan Beach CA934 Duncan (5br/5ba, 4050 sqft.) (pictured) is a custom early-90s home with updates and some views (currently). It launched in February this year at $3.799M and just cut $449K to $3.350M.

Last year, it was almost $1M higher at $4.299M in a separate listing.

933 9th (4br/3ba, 3975 sqft.) is a 1980s home with some updates that began in April at $3.595M, and has now just cut $400K to $3.195M.

921 9th (6br/5ba, 4900 sqft.) is a much newer neighbor, a 2012-built Cape Cod that began in early June at $4.999M and has quickly cut $250K to $4.749M. Looming just a few doors up the hill is the recent sale of comparably sized new construction at 873 9th (5br/5ba, 5075 sqft.) which settled at $4.200M in late May.

207 S. Poinsettia (6br/5ba, 3750 sqft.) is on its third listing this year, launched in early April at $3.350M and restarted for its third listing in late May at $3.000M. A recent cut of a whopping $500.00 gets it on this list (now $2,999,500).

611 Anderson (4br/2ba, 2100 sqft.) where the listing says it could be a remodel or teardown. Began at $2.200M in late May and has already cut 10% to $1.999M.

Tree Section

1701 Oak Avenue Manhattan Beach CA1701 Oak (4br/3ba, 3575 sqft.) is Dave's listing on the "right" side of Oak, a bright and large Cape Cod that's ready to go for the family who's looking to make a move now.

Start price of $2.300M has been cut twice already in 2 weeks to $2.250M. There's a message in those numbers, folks.

527 14th (5br/5ba, 4850 sqft.) (pictured above) began at $6.199M in April, has now made $700K and 11% worth of cuts over the past 6 weeks to $5.499M.

505 14th (6br/6ba, 3850 sqft.) is new construction at the corner with Ardmore that began at $4.799M in March, now is down to $3.999M with the latest $250K cut.

610 12th Street Manhattan Beach CA610 12th (4br/6ba, 4250 sqft.) is the ultra-custom glass house in the South Martyrs neighborhood near downtown, with great views. It began at  $6.750M in February (on a prior listing), and is down now to $5.995M. The last time they asked so "little" for this home was in June 2013 (the owners tried for parts of 2013-14 before this 2016 effort).

2921 Laurel (6500 sqft. corner lot) began at $2.449M in April and has made 3 separate cuts to get to $2.099M now. Good dirt there.

3617 Elm (3br/2ba, 1200 sqft.), a small rental-caliber home on Rosecrans, began very high at $1.699M in December, realized it in the 4th month and cut to $1.397M, had a deal, lost it and came back higher again at about $1.5M, and cut again last week to $1.397M

Sand Section

232 6th Street Manhattan Beach CA232 6th (6br/5ba, 4300 sqft.) is really nicely done modern new construction with a great indoor/outdoor feel and serious ocean views. It launched at $9.000M in February, cut $1M in April, and just cut $400K to $7.599M.

3602 Manhattan (3br/4ba, 1600 sqft.) is a late-80s townhome that began way-back-when in September last year at $2.100M, waiting till Spring this year to make a cut when that wasn't working. After 2 cuts, the price is now at $1.899M.

532 21st Street Manhattan Beach CA532 21st (2br/1ba, 1325 sqft. on a 3500 sqft. lot) is a mostly original home being sold as-is and with building plans. It began in early June at $2.049M and cut to $1.995M.

516 Marine (3br/2ba, 1600 sqft. on a 3000 sqft. lot) is nearby but has made its 2 price cuts in the most annoying way possible: With bogus re-lists each time. After a start in mid-June at $2.299M, it has taken two $50K chops to reach $2.199M now.

3808 The Strand (6br/5ba, 4350 sqft.) began way-way-way-back in July 2015 at $8.695M, didn't get much notice, just cut $400K to $8.295M and, we'll see if it gets noticed now.

East MB

1611 18th Street Manhattan Beach CA1611 18th (5br/5ba 3450 sqft.) is new construction that launched high at $2.949M in May, came down $100K in mid-June and cut $150K more last week to $2.699M, on par with the nearby Liberty Village new homes that just went into escrow at 1304 Lynngrove ($2.599M) and 1901 Lynngrove ($2.699M).

1131 8th (5br/6ba, 4400 sqft.) is a glam custom Mediterranean that began at $4.000M in May, and has now made 3 cuts worth 13% total to $3.479M.

1750 8th (6br/6ba, 4530 sqft.) is an oversized, newer Cape Cod right next to a double-lot parkette that began at $3.000M in May, and is now at $2.850M.

That's a pretty thorough report, but it mainly covers just about a week's worth of cuts – and this week is still young.

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