April 2013 at the Manhattan Beach Pier
As I noted in my post on first quarter sales in The Beach Cities; there are a number of opinions about the stability of the current market. The LA Times has an interesting take on the lack of foreclosures and they may be right about the temporary effect of new laws in CA dealing with foreclosures.
As Manhattan Beach really didn't see much short sale or foreclosure activity, even at the low point of the market. While real estate values in Manhattan Beach certainly lost ground, our market was not hit as hard as others in Southern California. In fact coastal communities in general have seen a strong resurgences in property values in recent months. Cash buyers are a strong force as well as buyers with larger than normal down payments and strong financial statements. Low interest rates continue to keep things lively.
The biggest issue in Manhattan Beach, Hermosa and Redondo is lack of inventory. What will push an increase in inventory is when sellers believe they can get a price that will justify selling their home. Some sellers are thinking about cashing in on the current "hot" market and then waiting to buy a new when the market cools a bit in the fall. Other sellers are willing to sell if they can find a new place to buy which is why off market sales are going strong. Realtors are networking with each other to meet their clients' needs. In fact pocket listings are creating a lot of interest at the State and National level as inventory remains low and multiple offers are the norm.
I do think we are going to see the market calm down a bit in a few months as more inventory hits the market. An increase in interest rates would bring a change to the market. There is still a long way to go to reach the price levels of 2006-2007 but things are definitely on the upswing.
The current snapshot gives you a good idea of just how low inventory is and where prices are as of April 23, 2013. There are 33 homes and 7 townhomes/condos currently for sale in all of Manhattan Beach. It wasn't long ago when there were double that number for sale in just one area of Manhattan Beach... Times are definitely changing!
Manhattan Beach: Market Snapshot April 23, 2013: