Manhattan Beach Homes and Townhomes : December Average Days on Market
As the year winds down there have been a lot of changes in our local Manhattan Beach real estate market over the last 12 months. Home prices have seen fairly large declines in value since 2008. In many sub markets we are seeing values at 2004 levels and we may see homes at 2003 levels next year.
While the prices of entry level homes seem to be finding a floor, the upper end of the market is still seeing prices decline as financing remains tight for everyone who is not an all cash buyer. Appraisals continue to come in lower then the sale price as lenders try to protect themselves in case prices fall more next year. Sometimes it seems as if lenders really don't want to make loans even to the most qualified of buyers. They talk a good story but when it comes down to funding many lenders seem to have a bad case of sticky fingers when contemplating letting money go from the bank vault to the consumer.
Inventory has dropped significantly from 2008 and is now lower then 2007 levels. There are currently 81 homes and 35 townhomes for sale in Manhattan Beach. A few months ago the inventory was hovering around 190 for homes and 45 for townhomes.
While some of the decline can be attributed to the season, many sellers decided to take their homes off the market as they couldn't get the price they wanted or in some cases needed. Other sellers are doing the finance dance with their lender hoping to refinance at a better rate and a number of homes have been rented and won't be back for at least a year. Others are being remodeled to fit the needs of the owners.
Unlike last year at this time, when we saw some of the most dismal sale numbers posted in many years, there are a number of homes entering escrow...46 homes and 12 townhomes as of this afternoon. That's a fairly respectable number considering the time of year and the financial climate. Price declines have certainly been a factor. Some owners, who got the price right at the start, sold quickly and a few saw multiple offers but most of these homes only found a buyer after a number of price reductions and a long market period.
November, which is usually a kiss of death month, saw 24 homes with a median price of $1,412,500 and 11 townhomes with a median price of $1,235,000 close escrow. Sales are looking up but prices are definitely down. Credit is still on the sparse side even for those with a good financial position. The Feds keep trotting out changes they hope will make the market better for the consumer but often just seem to make things worse. Next year, no doubt, will present a new set of challenges for both buyers and sellers... but that's another post.
Manhattan Beach: Market Snapshot December 11, 2009
Manhattan Beach: Price Ranges December 11, 2009