Surprise High for Tree Section?

By Dave Fratello | October 17th, 2017

Don't count out the chances for Tree Section new construction prices to remain high. 

And what happens with new construction west of the highway has implications for East MB new homes, too. 

We're brought to this realization - a bit of a surprise, to be honest - thanks to a recent closing. 

3000 Palm Avenue Manhattan Beach CA3000 Palm (5br/5ba, 3600 sqft.) is Tree Section new construction in an elegant Cape Cod style.

They were very confident about their project here, so when they first listed it in April before it was ready, they asked for a whopping $4.195M.

Yes, there have been Tree Section sales outside the Martyrs area over $4M in the last couple of years, but all were much larger: 4500 sqft. or more.

They cut a few times once the home was ready for market, but 3000 Palm has still come in at one of the most impressive sale prices in a long while.

A lot of the past year's comps for this one were new construx in the 3.2 range, not near 4.2, like:

3308 Poinsettia Manhattan Beach CA3308 Poinsettia (5br/4ba, 3600 sqft., $3.250M, Oct. 2016),

860 27th (5br/5ba, 3500 sqft., $3.275M, Oct. 2016),

2512 Palm (5br/6ba, 3350 sqft., $3.200M, March 2017), and

1801 Walnut (5br/5ba, 3150 sqft., $3.190M, May 2017).

And there were a couple bigger numbers:

3301 Palm (5br/6ba, 4200 sqft., $3.600M, May 2017) - a notably bigger house, and

2622 Maple (5br/6ba, 3200 sqft., $3.435M, April 2017) - the only comparable sale in the Trees over $3.350M in 16 months.

If anything, the trend in the Trees had seemed to be down, with the biggest disappointment (dollar-wise) perhaps being 3312 Poinsettia (5br/4ba, 3600 sqft., $3.087M, Aug. 2017). 

But 3000 Palm defied the conventional wisdom that asking too much means you'll sell for too little. 

The closed sale at $3.550M is a testament to the quality of work, no doubt. But it's also nearly the top sale for similar new construction in the Trees over the past 3+ years.

569 33rd Street Manhattan Beach CAThe $3.550M figure was beaten only by a home down by the Sand Dune at 569 33rd (6br/5ba, 3650 sqft., $3.795M, March 2016), featuring a larger, street-to-alley lot in a location that's plainly superior to 3000 Palm.

You can really say that $3.550M price stands atop a field of closer comps.  

The $3.550M beats two other sales from 2016: 3101 Maple (5br/5ba, 3200 sqft., $3.500M, Jan. 2016) and 868 27th (5br/6ba, 3575 sqft., $3.520M, April 2016).

You'd be forgiven for thinking that those numbers weren't coming back.  

Indeed, if you had predicted October 2017 for a new high among Tree Section new construction, well, your bookie would have been happy to take that bet. He might be shocked to be paying off right now. 

Seems that you have to respect and take note of the resilience of this segment of the market. 

And the sale must put a little wind in the sails of the sellers over at 2612 Pine (5br/4ba, 3600 sqft.), now occupying this little tier of the market alone and asking $3.595M.

They've now got a dead-on comp in a not dissimilar location at nearly the same price. They can say "this is the market now."

Let's see how they do. 

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale