Would You Believe Prices Are Up?

By Dave Fratello | October 6th, 2016

For the first three quarters of 2016, the median price for homes in Manhattan Beach rose to a new record high.

Raise your hand if you saw that coming.

Here's the new high for real estate in MB: $2,087,500.

That's the median price for the first three quarters of this year, compared with the first three of each of the prior 7 years.

Just the other day, we heard someone who's not in third grade say the "median" was the "average" price.

No.

So here's a friendly reminder: The median price is the number at which half the homes sold for more, while half the homes sold for less. Specifically, out of 292 sales from Jan. 1-Sept. 30, 2016, there were 146 on either side. (You data nerds will understand that we had to average the prices on sales #146 and #147, but the point remains the same.)

This is quite nearly a 50% increase in the median price from the depths of 2009, and a not-insignificant 4% uptick from 2015 and 10% up from 2014.

You hear a lot of people say things like, "If we could just skate along at 3-5% appreciation every year, we'd be happy." Well, after a major runup from 2012-14, that's almost what we're getting now.

Caveat: Individual results will vary.

Now, Dave, what's so surprising about an increased median price here in 2016?

There is no way to say this has been a "bad" year, just one where it feels like things are leveling out.

There's been a flight to quality. New construction homes are coming out but struggling to get their specked-out prices. And when new construction prices wobble, so do prices for "used" homes.

But for all the signs that might be of some concern – higher inventory, lower sales volume, higher DOM counts – the fundamentals for Manhattan Beach real estate remain pretty good. Buyers are happy to have choices, time and (still) unspeakably low interest rates.

We'll take a look at more data shortly, but for now, enjoy that first takeaway: Up, again.

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"Inventory Higher in 2015; Prices, Too"

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