Manhattan Beach: Days on Market June 15, 2009 
After a long cold winter and an insipid spring the Manhattan Beach real estate market seems to be picking up. A somewhat stable stock market, low interest rates and the return of jumbo loans by most of the major lenders have been factors. However the biggest factor seems to be lower prices... what a surprise!
While prices remain higher then many predicted they have dropped since last year. Inventory is dropping while pending sales are increasing. Since yesterday ( June 15, 2009) 8 more homes are pending for a total of 63 homes and 16 townhomes now in escrow. There are 156 homes for sale today compared to 164 yesterday. MLS data shows 9 townhomes and 20 single family homes closed escrow in May 2009. As of June 16, 2009 2 townhomes and 14 single family homes have closed escrow.
The big question is whether the rise in sales is an indication of the market beginning to stabilize or is this simply a wakeup call to sellers... lower your price and it will sell. A number of the recent sales were properties that had been on the market for well over 6 months and some for as long as 3 years. I'm guessing we will see further price declines, especially if rates start moving upward as inflation concerns become a factor for many investors.
There are a lot of factors that will influence where this market is headed over the balance of the year. If rates remain fairly stable and jumbo loans continue to be available then the market may well continue to move along. However if interest rates take a big jump in the next 2-3 months then I'm guessing the market will slow again as buyers and sellers re-evaluate their positions.
Manhattan Beach: Market Snapshot June 15, 2009(click on graph to enlarge)
Manhattan Beach: Price Ranges June 15, 2009
Manhattan Beach: Market Snapshot April 14, 2009
Manhattan Beach: Market Snapshot March 14, 2009
Manhattan Beach: Market Snapshot February 10, 2009
Manhattan Beach: Market Snapshot January 19, 2009
Manhattan Beach: Market Snapshot December 4, 2008
Manhattan Beach: Market Snapshot November 8, 2008
Manhattan Beach: Market Snapshot October 13, 2008
Manhattan Beach: Market Snapshot September 15, 2008
Manhattan Beach: Market Snapshot August 19, 2008
Manhattan Beach: Market Snapshot July 17, 2008
Manhattan Beach: Market Snapshot July 7, 2008
Manhattan Beach: Market Snapshot June 20, 2008
Manhattan Beach: Market Snapshot June 5, 2008
Manhattan Beach: Market Snapshot April 29, 2008
Manhattan Beach:Market Snapshot April 14, 2008
Manhattan Beach: Market Snapshot March 31, 2008
Manhattan Beach: Market Snapshot March 13, 2008
Manhattan Beach: Market Snapshot February 26, 2008
Manhattan Beach, CA: Market Snapshot February 11, 2008
*There are a few more sales and pending sales not on the MLS that are not included in the graphs.
4 comments:
Hi Kaye,
I have noticed that in the past two weeks nearly EVERY lower-priced livable house in the neighborhoods I follow seems to have gone pending. (I mainly follow El Segundo, Westchester, and the Bixby Knolls/Cal Heights area of Long Beach plus some others) Have you also noticed this increase in activity in the lower (sub 650 or so) range? Or is it just my imagination?? My thinking is that potential buyers on the sidelines were spooked by the uptick in rates and decided to stop waiting to buy. Do you have any thoughts on this?
As always thank you.
Anon 8:11,
You are right entry level homes are moving quickly... However this has been happening very quietly for the last few months.
It has become more apparent because there are not many new listings hitting the market in the lower price ranges...so inventory is not as plentiful as it was early in the year.
I believe the drop in rates a few months ago is the main reason buyers decided to jump back in the market in the Spring. The recent spike in rates has pushed a number of buyers to get more serious about finding a home.
Buyers who have been waiting for the last 2-3 years are not interested in any exotic loans. They want a plain vanilla 30 year low interest rate mortgage. The ups and down of the market in the last few years have finally brought home to consumers the importance of a loan with a stable interest rate.
Also many buyers at the entry level find prices have reached a point they consider to be reasonable. When you factor in lower rates payments are close to rental numbers.
They realize that the market may continue to decline but they don't think it will be a huge decline. Most that I talk with seem to feel that the entry level has come close to the bottom. They believe that a rise in rates is more of a deterrent then the possible smaller declines in value.
Thank you for your comments.
Entry-level inventory out there has all but disappeared. These are not exactly great homes nor in the nicest neighborhoods so I am a little puzzled by the frenzy.
I agree there is a huge pool of potential buyers who have been waiting for reasonable prices. I think most are probably financially responsible and have been waiting for a very long time.
I guess I just have a different view of what "reasonable" is.
Anon 12:28,
Reasonable is what fits your budget. I'm seeing buyers seriously looking at Hermosa, Redondo and El Segundo rather then MB as there are better deals for the money.
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