Once again South Bay-Beach Cities real estate seems to be the topic of the day at any gathering of more than one person. Everyone wants to know what is happening in our local market. While buyers at all price points are seeing a major lack of inventory and multiple offers; it is really tough for buyers looking under $1,000,000 and not much better for those in the $1,000,000-$1,500,000 range.
The chart above really gives a detailed picture of how low inventory is this year compared to previous years.. There are 143 homes for sale in Manhattan Beach, Hermosa Beaach, North Redondo, South Redondo and El Segundo. While this is not a totally accurate picture because of inventory that might be on the market if the sellers can find a home to purchase it does show what the problems are facing home buyers.
I have clients who bought a few years ago in Manhattan Beach and did a major upgrade to the property. Last year I gave them an update on the value of the home which put the value about even with the cost of the upgrades added t the price they paid.. Now less than 9 months after my last estimate the current market value of their home is worth well over the estimate from last year. The rise in value isn't limited to Manhattan Beach but rather is happening in all the Beach Cities. If you bought since 2009, despite all the talk about the market never coming back, you likely made a very wise financial choice.
As promised here is the follow up my post on the number of sales in the South Bay-Beach Cities from 2005-2012. Looking at median prices in the South Bay-Beach Cities you will find some curious statistics. While the number of sales shot up from previous years prices didn't see the same effect. As an example, the median price of a single family home in Manhattan Beach was the same as it was in 2011 and actually lower than it was in 2010. In Hermosa Beach the price was up over 2010 and 2011 but lower than it was in 2009.
Median Price in the Beach Cities 2005-2012