Wednesday, November 07, 2007

Manhattan Beach: Market Snapshot November 8, 2007

Manhattan Village... The Hottest Market in Town?

There is a lot of speculation about real estate prices in Manhattan Beach and the Beach Cities. One side is praying prices drop drastically while the other side is praying just as hard that they don't. I think we will see a little of both in our local real estate market. Yesterday I posted an article about the number of homes over $3.5 million that have sold since 2000 in Manhattan Beach. The big surprise is that this year has seen more homes sell over that number then any other year.... and the year is not over.

Last week I was walking along The Strand from Manhattan Beach to Hermosa Beach. There are 8 projects in Hermosa along the Strand north of the Pier and 2 in Manhattan Beach south of 10th Street. We are talking about some very serious money not just in building costs but also in home prices as some of these will probably be for sale when completed. There are only two homes for sale on The Strand and both are in Hermosa Beach.

This year in Manhattan Beach we have seen a lot sell at $5,495,000. Three homes sold... one at $8,200,000 another at $8,900,000 and one at $10,700,000 that sold in days. There were 5 townhomes that sold between $1,660,000 -$4,350,000. There is currently nothing for sale on The Strand in Manhattan Beach.... but there are a number of buyers who are ready to purchase if a property becomes available.

At the same time we are seeing prices beginning to drop in other parts of Manhattan Beach. The tree section has a glut of inventory and few sales in the mid- price range of $2.2-$3.2 million. After a long dry stretch a number of homes are selling in East Manhattan. There are currently 25 pending home sales in Manhattan Beach and 12 of those are east of Sepulveda.

Manhattan Village seems to be the hot spot at the moment after a long dry spell. There are 3 townhomes available and 2 single family homes. There are 4 townhomes in escrow and four closed sales in the last 30 days.

Manhattan Beach: Market Snapshot November 8, 2007(Click on graphs to enlarge)

Manhattan Beach: Price Ranges November 8, 2007

I believe we are going to be affected if the Writers Strike proves to be as long as the one in 1988. The question is whether we are going to lose buyers, see people forced to sell their homes... or a combination of both if the strike goes on for months. I suspect that if the strike is short we will not see much of an effect... but if it goes into the Spring ... some people may have to consider selling their homes. It is also possible that the Directors and Actors could go out on strike as their contracts are also up next summer. If film production as well as television production is disrupted then we could be in for some rough times.

Manhattan Beach: Market Snapshot September 15, 2007

Manhattan Beach: Market Snapshot May 6, 2007

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