Manhattan Beach: Market Snapshot April 26, 2010

Manhattan Beach:  Days on Market April 2010

 There have been definite changes in the Manhattan Beach  real estate market  from April 2009- April 2010.  Inventory has gone down,  sales have gone up and interest rates  remain lower then many anticipated.   Last year  there were 178 homes and 45 townhomes for sale in Manhattan Beach in April 2009.  This year there are 108 homes and 40 townhomes for sale.  Last year by mid April 7 homes and 4 townhomes had closed escrow.  This year 23 homes and 3 townhomes have closed escrow so far this month.  Last year there were 39 homes and 11 townhomes in escrow... this year there are 53 homes and 14 townhomes in escrow.

While the numbers don't come near the figures for the boom years prior to 2007, the steady trend of the last 3 quarters shows that the market may be beginning to stabilize.    The upward push seems to be coming from the lower end as the entry level is showing  stable to slightly higher prices then last year at the same time.   The mid range of the market continues to bounce a bit but in general is finding a more solid course.  The  upper end the market is still looking for stability.  Most of the high end  homes that are selling are  those that have lowered their prices from last year.   There are a few exceptions of course,  but in general  prices on higher end homes have more room before reaching  bottom. 

The days on market continue to show that  the overall market still has some wiggle room before finding the low end of the market.  Homes that are priced right are selling fairly quickly but  generally inventory is seeing average market times of 90+  days.   Price, location  and condition are still the keys to a quick sale.    If you have to sell fast you need to price it right and make it sparkle.



Manhattan Beach: Market Snapshot April 26, 2010

Manhattan Beach: Price Ranges April 26, 2010

House Tales: The Tale of a Sale... 511 N. Dianthus Manhattan Beach

In April of 2008 I listed 511 N. Dianthus in the Hill section of Manhattan Beach.  The home was a probate sale.  It had been owned by the same family since it was built in 1964.  The initial listing price was $1,429,000 which was considerably less then the appraised value from the state and  a private appraisal the heirs had ordered. 

Over the next few months the  financial markets would begin to crumble and home prices would soon follow.    This was the home Mom had dearly loved.  She had planned the yard  with care and loved her pond with the Koi and turtles.  The owners  had grown up in  the house and remembered when it was the largest home on the street.  They reduced the asking price a number of times, but it was difficult  watching the home where they had grown up losing value in  a rapidly changing market.

While the property received  offers, the owners and potential buyers were not able to reach an accord on price.  As always there was lots of chatter  about the  real market value of the property.  After being on the market for 10 months the owners decided to rent the house for a year.  In March of 2009  the for sale sign went down. 

But that is not  the end of our tale but rather the beginning.   All was fairly quiet until the fall of 2009.  In September  I started getting a number of calls from agents and  potential buyers who had toured the property while it was on the market wanting to know if the sellers  were still willing to sell.  The interest generally faded away when folks realized that the home was rented until the spring of 2010.   A few months later as inventory continued to decline interest again picked up in the house.   By the end of November I had three potential buyers who wanted to make offers on the house. 


The owners talked and decided that they would entertain offers on the property subject to the existing lease from the folks who had contacted us.   If someone met their price great... and if not they would think about listing  the home at the end of the lease term.    It seemed that now folks were serious and we wound up in a multiple offer situation.    One of the buyers  agreed to the price the owners wanted and escrow was opened in December with a closing to be 30 days after the property was vacant. 

I had to chuckle when reading a comment about the sale on Manhattan Beach Confidential.   It was interesting that a year ago many would have considered the current price over market value and now, even though prices declined in the last year,  it was a sweetheart deal.   The truth is that everyone who was interested in the property had seen it when it was listed.  I probably had  10-15  calls from agents and principals after it went off market.  There were multiple offers on the property... but only one of the buyers was willing to meet the price the owners wanted.  The property had an appraisal done by the bank.   The actual sale price was $1,050,000... however the reported price... $1,030,000...  was  lower as  one of  the new owners is a real estate licensed and the price reflects  that commission was deducted from the sale price.  I didn't report a higher price on the MLS but did note that the price reflected the adjustment  for comp purposes.

The new buyers  have some great plans for the home and have promised me a tour when all is done.   With their permission I'll take some pictures and post them.  While many disagreed with me when the property was listed,  this house has good bones and  a great location.  The new owners recognized that and knew that  a bit of imagination and a good architect can make this a lovely home.

March Madness... Beach Cities Real Estate Prices Soar

In a dramatic turnaround from last year at this time inventory has shrunk and sales have soared.  With Manhattan Beach leading the way the number of  closed sales in March for the Beach Cities was in triple digits in each city.  These sales numbers haven't been seen since 2005.

As reported in the Daily Breeze yesterday consumer confidence is rebounding across the country.   Of the 52 closed sales in Manhattan Beach in March 15 were all cash.   20 of the sales had multiple offers with the final price above the asking price.  Surprisingly only two of the sales had issues with low appraisals.   A number of those sales were to builders who had dropped out of the market in 2007.  As new construction has continued to sell off builders are seeing this as a great time to begin picking up inventory.  One  prominent local builder told me he expected to have 3 projects finished by fall.  He indicated that his phone had been ringing off the hook for the last month with folks asking when he would begin building again. 

Hermosa and Redondo saw similar sale figures while the jump in sales in El Segundo was slightly smaller.  The big news was of course builders begining to get back in the market.  Hermosa nd Redondo saw a 40% increase in permits for new projects.     With numbers like these buyers need to get ready for a boom in the real estate market that may exceed that of 2002-2003 as demand continues to rise...



For those of you who think this is too good to be true... what can I say.. You are right and it is... Happy April 1!