Recent Home Sale Shows Just How Hot the Oceanview Market Is

By Keith Kyle2401 Manhattan Ave

There is no question that the real estate market in Manhattan Beach has been on fire since the beginning of 2013.  Record low inventory and intense demand for luxury homes and prime locations has created a building boom not seen in a long while.  Multiple offer situations seem to be the norm and the number of all cash buyers continues to drive this already competitive market.   This continued demand from buyers and builders alike has driven prices upward to record numbers and nowhere is the demand greater than in the sand section.

The most recent example was the walkstreet home located at 2401 Manhattan Ave.  Just a block to the beach and having fantastic corner lot ocean views this home was certainly going to interest both the owner/user looking for a great location and builders seeking the same.  The home was listed at $2,495,000 which is already a huge number for a half lot home but all indications appear that the home had at least 11 offers and sold over $3.0M* which is a staggering number for a home with the limitations that come along with a 1,352 square foot lot.   Any future build will be limited to around a max square footage of 2000 feet.  The last sale of a new construction half lot (not on a walkstreet which certainly adds value) closed at $3.3M at 124 23rd Street.   Over $3.0M for this likely tear down at 2401 Manhattan Ave is a very large number indeed and shows just how far values have come in the past 24 months.

We're sorry, but we couldn't find MLS # 314032829 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

*Sales price and number of offers is not verified information

October a Strong Month in Manhattan Beach Home Sales

By Keith Kylestrand homes

October showed no signs of a slowdown in the luxury real estate market of Manhattan Beach.  42 homes closed escrow and prices reached new highs with a median home price of $2.1M and an average home price of $2.2M which is well over the previous 18 months.  Of the 42 home sales only one was sold below $1,000,000.  12 of the homes sold between $2.0M and $3.0M, 3 homes sold between $3.0M and $4.0M and 3 homes sold above $4.0M.  Visit our market trends page to see the current price and market trends for all of Manhattan Beach CA.

View the October 2014 home sales in Manhattan Beach

Housing Inventory Remains Low in the Sand Section

Despite a one month uptick in new listings in the sand section of Manhattan Beach, it appears that there’s no real relief in sight as record low inventory continues.  There were 64 homes for sale in September of 2011 and as of 11/5/14 there are only 17 current active MLS listings.  To a certain extent that lack of inventory for the past 2 straight years has seen home prices rise dramatically.  The average sold home price in September 2011 was $1.736M and the average sales price just 2 years later was $2.864M…..a 65% increase.

It’s Not Hard To See Why Builders Are Buying Everything in Manhattan Beach

Whenever the real estate market is on fire, as it is right now in Manhattan Beach, the demand for luxury homes intensifies and builders are happy to take advantage of this dramatic increase in demand…..and why wouldn’t they?

It’s not hard to see why builders are scrambling to buy any fixer, tear down, or even the charming, but smaller, beach bungalow.  We’re seeing prices of new construction reach heights that would have seemed impossible not long ago and the usual constraints such as smaller lots, less than ideal locations, and even lot prices well beyond lot values don’t seem to matter.

Let’s look at a few recent properties:

750 30th Street in the Tree Section

Sold December 2013 (above left 1952 1138 ft bungalow on 5417 foot lot) at $1,552,000 and recently listed (above right 5 bed/5 bath 5000 sq feet) at $4,499,000

 

1905 Elm in the Tree Section 

Sold in May of 2013 (above left – 1952 beach bungalow) for $1,131,000 and currently in escrow (above right – 5 bed/5 bath 3111 square feet) with list price of $3,100,000

 

128 14th Street in the sand section  

128 14th Street - 2012 128 14th Street

Sold in April 2012 (1954 built triplex) for $1,950,000 and currently in escrow (4 bed/5 bath 4000 feet) with list price of $5,995,800.

 

433 Marine Place in the Sand Section

Very poor condition home at 433 Marine Place sold for $957,000 in March 2012.  Home was torn down with 2 new townhomes put on the lot.  Townhome at 433 Marine Place (3 bed/4 bath 2000 square feet) selling at $1,979,000….while second townhome at 432 23rd Street (3 bed/4 bath 1929 square feet) sold for $2,152,000

There are countless other recent sales and a number of new construction projects coming on the market in the next few months.

Call/text us at 310-251-2344 for more information or contact us with any questions.

 

Are Manhattan Beach Starter Homes a Thing of the Past?

By Keith Kyle

Without question, Manhattan Beach is a “hot” real estate market.  As if the number of homes selling over list price with multiple offers doesn’t pose enough of a challenge to entry level buyers, the competition with builders and developers makes it all but impossible.  Whenever the market heats up to this extent it seems that every builder, investor and developer wants a piece of the action.  Whether it’s flipping a larger but older home, or knocking down the original bungalow to build an estate property, the potential profits are just too enticing for builders…..and that all but eliminates the opportunities for entry level buyers.

These builders are looking for just about any well priced home or piece of property and many get sold before they’ve even gone on the market.   The problem is that what these builders consider “tear downs” are the very same homes that many buyers would consider starter homes…and their entry into this high demand community.   What might be an affordable original 3 bedroom, 1200 foot home built in the 1940s priced in the low $900s, gets knocked down, quickly developed and soon comes to market as a $3.0M+ mansion.  Unfortunately buyers looking to get into this neighborhood are often young professionals or young families interested in the award winning schools, but are priced right out of the market.

128 14th Street - 2012 Sold April 2012 for $1,950,000
128 14th Street – 2012 Sold April 2012 for $1,950,000
128 14th Street - Currently listed at $6,399,000
128 14th Street – Currently listed at $6,399,000
Listed for $2,999,000 2014
221 23rd – Listed for $2,999,000 2014

This isn’t the first time that this has been the struggle and it won’t be the last.  Buyers either need to be very patient and wait for these dramatic price increases (and almost instantaneous profits for builders) to ease up, or be willing to overspend a bit to compete with the builders when the home actually does make it to market.

For sellers the time is most certainly right, but they need to be cautious as more often than not they could likely get more money by listing the home and putting it on the open market than selling to a builder without any competition.

strand homes

What’s shocking to some is commonplace in Manhattan Beach real estate

By Keith Kylestrand homes

One of the more challenging aspects of selling homes in the luxury community of Manhattan Beach, is the “sticker shock” many out of town buyers have when we first start searching for a home.  As one of the more expensive markets in the country, buyers are often unprepared for the type, size or condition of the home that they can get for their money.  Buyers inevitably compare the home they are selling to the home they are buying and without taking location into consideration, they find that they can often purchase something not even similar to what they’re selling.  The greatest surprise comes to buyers from states such as Texas in which they owned a 5000 foot mansion on acres of land for example and the $1.5M that they sold it for translates to  a 3 bedroom, 2200 foot townhome in Manhattan Beach with a lot measured in feet and not acres.

The reason for all of this, of course, is that it’s all about location….and the demand for that location.  There is such demand for homes in Manhattan Beach which offers great neighborhoods, ocean views, award winning schools, almost perfect weather, proximity to a world class destination beach, and near enough but far enough from the hustle and bustle of Los Angeles, that prices just continue to rise at an often incredible pace.  As there is no additional land to build on, even “fixers” or tear downs sell above market value as builders are eager to cash in on the demand for new construction luxury homes.

So what can an out of state buyer do?  Research the recent home sales in Manhattan Beach and current listings.  Getting comfortable with the fact that, although the prices are dramatically higher than other cities and states, these are the prices and the costs to live in such a high demand area.  Southern California has always been one of the most sought after housing destinations in the country and nowhere is that demand greater than life on the coast in Manhattan Beach.  Buyers that research values, prices and trends,  may still have that initial shock but just having an understanding that these are not “inflated” prices but just the values of the area and down the road when it’s time to sell, they’ll be on the other side of this incredibly strong market.

ARE YOU INTERESTED

in owning your piece

of the luxury beach lifestyle

BUILDING LOCATION

Keith Kyle has been a full time realtor in Manhattan Beach since 2005 and has been recognized as one of the top producing agents at Vista Sotheby’s every year since 2007

ADDRESS:

2501 N Sepulveda Blvd., Manhattan Beach CA 90266

Phone:

310-251-2344

E-mail:

CONTACT AGENT

DRE#01712785

Keith Kyle

REALTOR

Keithkylehomes.com . All rights reserved.