In today's Daily Breeze there is an article on the front page of the Business section: Area Real Estate Loses Ground that must have made the Bubble Bloggers dance for joy. Headlines point to a 14.8% drop for Manhattan Beach. and a 9.5% drop for Redondo. It's not till you get to page 3 that you find out that Manahttan Beach is still #2 on the list of most expensive cities in the state.
In the interest of fairness I must note that we know 2006 was not a great year for real estate in CA. It sure wasn't for Manhattan or Redondo. Until the end of October inventory was running very high in both cities and sales were at a standstill. But inventory has gone down by 50% since November 1, 2006 in both cities mainly because property has sold. So it will be of interest to see how the numbers shake out for the next few months. I can tell you that what is selling is very clean and well priced. Anything else is just sitting. I expect to see more price reductions in the next month on new homes and some hopefully priced homes... that is those where the owner was hoping they would sell at a high price.
The question then becomes what has sold. Pretty consistently across the board it appears to be the low to mid priced homes and the really prime expensive stuff. In Manhattan this means homes priced at $2,100,000 or less. or at $5,000,000 or more. New homes are sitting once again after a brief flurry of sales at the end of the year.
So... are prices coming down in the South Bay... of course they are.. but still overall it is less then 10%..
FYI: 2006 sales in MB compared to 2005 sales... prices are median prices..
In the interest of fairness I must note that we know 2006 was not a great year for real estate in CA. It sure wasn't for Manhattan or Redondo. Until the end of October inventory was running very high in both cities and sales were at a standstill. But inventory has gone down by 50% since November 1, 2006 in both cities mainly because property has sold. So it will be of interest to see how the numbers shake out for the next few months. I can tell you that what is selling is very clean and well priced. Anything else is just sitting. I expect to see more price reductions in the next month on new homes and some hopefully priced homes... that is those where the owner was hoping they would sell at a high price.
The question then becomes what has sold. Pretty consistently across the board it appears to be the low to mid priced homes and the really prime expensive stuff. In Manhattan this means homes priced at $2,100,000 or less. or at $5,000,000 or more. New homes are sitting once again after a brief flurry of sales at the end of the year.
So... are prices coming down in the South Bay... of course they are.. but still overall it is less then 10%..
FYI: 2006 sales in MB compared to 2005 sales... prices are median prices..
February: The state didn't post numbers for MB
March: $1,625,000 +13%
April: $1 ,685,000 +22.5%
May: $1,241,000 -8.9%
June: $1, 570,000 -.03%
July: $1,457,750 +1.3%
August: $1850,000 +26.76%
September: $1,465,000 -8.4%
October: State has no numbers for MB
November: $1,400,000 -22%
December: $1,275,000 -9.9%
So there you have it... a pretty much mixed bag of prices with some big numbers and some small numbers. So are prices going down.. of course when compared to 2005 which saw more sales at higher prices then any year since housing information has been kept. Will they drop another 25-35% .. it's not looking that way.. but then they won't be going up drastically again either.
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