Inventory continues to be lower then we have seen in a long time. The last time inventory was at these levels was in the fall of 2007 when there were 122 homes listed for sale. Of course back then the price mix was very different. In September 2007 there were 3 homes priced under $1M... today there are 18. In the $1M-$2M range there were 53... today there are 43. In the $2M-$3M range there were 49 homes for sale... today there are 29. In the $3M-$4M range there were 10 homes for sale...today there are 12. In the $4M+ range there were 7 homes...today there are 19.
Sales in the Fall of 2007 were low as lenders found themselves in deep trouble over sub prime loans. Major lenders began pulling back on jumbo loans in August 2007 . Interest rates on jumbo loans jumped overnight to 8.5% or higher depending on the lender. Today while jumbo loans are more difficult to obtain because of tougher loan standards, interest rates are very good... under 6% for a fixed rate from most lenders with 20% down.
We've seen a lot of changes in the Manhattan Beach real estate market since 2007. Along with credit being tougher to obtain, we have seen prices decline. While Manhattan Beach has not had a high number of homes making it to REO status; we are seeing more homes receiving default notices and an increase in short sales. Sales volume is down from the Summer highs and prices are bouncing around in each of the city's sub markets. I expect to see volume continue to decline and prices to fluctuate. The median listing price for single family homes in Manhattan Beach is $2,249,000, the median sold price as of 9/25/ 2009 is $1,850,000 while the median pending sale price is $1,324,500. As of 9/25/2009 there were only 12 homes and 7 townhomes that had closed escrow.
Manhattan Beach: Market Snapshot September 25, 2009
Manhattan Beach: Price Ranges September 25, 2009