South Bay Home Inventory Continues to Rise

By Keith Kyle

What may be the beginning of a slight shift in the South Bay real estate market, inventory has continued to rise for the 5th straight month as both pending and sold homes remained relatively flat. Active homes for sale in July of 2014 were up 40% from the same month in 2013, while sold homes declined 11.7% and pending home sales only increased by 3.5%. This buildup of inventory may finally slow the market and lead to a market not so heavily favoring sellers.  The local Manhattan Beach real estate trends are slightly different with numbers being somewhat similar to a year ago in terms of active, pending and closed home sales although prices continue to rise, especially in the higher end of the market.  To see the most recent home sales visit our recent sales information site.

Manhattan Beach Real Estate Market Snapshot – May 2014

By Keith Kyle

Manhattan Beach real estate….by the numbers

May marks the 5th straight month with an increase in available homes for sale in Manhattan Beach with 65 current MLS listings as of May 5th, 2014.  See information below on the current market trends including current MLS listings, recent sales, pending home sales and home prices in this luxury coastal community in Southern California.

Active Homes for Sale:  Current Median Home Price $2,050,000

Active Homes for Sale – 65 homes
List Price DOM BR BA Year Built SqFt Lot SqFt
Min 557,000 3 2 1.00 1921 812 1,350
Max 7,999,900 370 7 7.00 2014 10,001 15,001
Avg 2,618,445 37 4 3.80 1984 2,990 5,227

Pending and Backup

Homes Currently in Escrow with Pending or Backup Status – 48 Homes
List Price ADOM Selling Price BR BA Year Built SqFt Lot SqFt
Min 905,000 1 1.00 1935 765 1,351
Max 12,875,000 355 6 7.00 2014 7,900 13,506
Avg 2,167,730 49 4 3.44 1980 2,799 5,025

Closed Home Sales in Past 30 Days (April 5th to May 4th)

47 Homes Sold/Closed Escrow 4/5 – 5/4
Single Family Residence – 44 total SFRs sold
List Price ADOM Selling Price BR BA Year Built SqFt Lot SqFt
Min 990,000 950,000 1 1.00 1925 699 1,286
Max 8,950,000 204 8,100,000 6 10.00 2014 8,500 14,368
Avg 2,235,316 38 2,166,045 4 3.20 1972 2,653 4,993
 Townhomes and Condos – 3 Total Sales
List Price ADOM Selling Price BR BA Year Built SqFt Lot SqFt
Min 1,299,000 8 1,450,000 2 3.00 1982 1,608 2,698
Max 2,299,000 33 2,100,000 3 4.00 2007 2,050 3,359
Avg 1,692,333 18 1,701,667 3 3.33 1992 1,878 2,921
All Home Sales – 47 Sold Homes
List Price ADOM Selling Price BR BA Year Built SqFt Lot SqFt
Min 990,000 950,000 1 1.00 1925 699 1,286
Max 8,950,000 204 8,100,000 6 10.00 2014 8,500 14,368
Avg 2,200,657 37 2,136,404 3 3.21 1974 2,604 4,860

Is the Real Estate Market in Manhattan Beach Slowing Down?….It Depends

By Keith Kyle

We have definitely seen signs of the market slowing down over the past 2 months in the South Bay, but that doesn’t mean that slow down has been shared equally.  In fact in situations where the home is special, or location is great, or just happens to be in an area in which inventory is still dramatically low, we’re still seeing an absolute frenzy with multiple offers, appraisal contingencies waived, and prices over the already high list prices.  So what’s leading this somewhat confused market?

There are many factors that have led to some houses being a hotbed of activity while others seem to sit.  Price is always a factor.  As I often advise my sellers, we have one chance to be a “new listing” and take advantage of all of the excitement and momentum that comes along with that.  Price too high and that momentum can quickly be lost.  Once a home is no longer a new listing, interest dies quickly.  With the incredible pace of the market in 2013 homes don’t stay “new” for long and if a home is still on the market after 10 days or so,  buyers start to lose interest or think that there is something wrong with the home.  Lesson to sellers…..price the home appropriately from the onset.

Chart showing decreasing number of active, pending and sold homes

Chart showing decreasing number of active, pending and sold homes in Manhattan Beach

The second factor is the constant in real estate…location, location, location, but add to that condition, condition, condition.  While this market is still incredibly active and favorable to sellers, it has certainly remained much stronger for “special” houses….whether that be the A+ location, the perfect remodel,  or the bungalow oozing with charm.   A few months ago it seemed any home was quickly snatched up regardless of condition or location.  With prices at near peak levels, however, buyers are often not willing to take on situations that are less than ideal.  Homes needing work, busy streets, less than ideal locations, are now sitting unsold for longer periods of time.

On the other hand there have been numerous recent sales in Manhattan Beach that were an absolute flurry of activity and interest from the moment they hit the market.  Buyers are still willing to chase homes, pay a premium, and even waive some of their inspection and appraisal contingencies if the new listing if it is special in some way and appeals to buyers in a price range with low inventory.

We should expect some typical slow down during the holiday period but sellers should take note that if their home isn’t ideally located, move in ready, or happens to be in that range in which demand is high, but inventory is low, they need to heed the advice of their real estate professional and be right on target with pricing.