Thursday, April 01, 2010

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!


Anonymous said...

You got me Kaye! Any suggestions for where to take kids for Easter Egg Hunts in the South Bay?

Kaye said...


LOL.. it was fun to write...

The only place I'm seeing any Easter Egg hunts is in El Segundo at Rec Park from 10:00-11:00. I didn't see anything in MB, HB or RB..
Happy Easter!

Anonymous said...

That was good - you got me too. I didn't need my caffeine this morning to wake me.

Kaye said...

Anon 7:48,
This is of course pure fiction with a few elements of truth... which is why you lost your coffee.

The market is begining to stabilize. Entry level homes appear to have reached the bottom last year. There are more homes selling at the upper end of the market then we have seen for the last few years.

Currently there are 62 homes in escrow in MB which is higher then we have seen for a couple of years.

The big fear is that we are going to have a double dip recession which would of course change the whole picture.

The next few months will give us a clearer picture of wher ethe economy is headed.