Manhattan Beach Distressed Sales: Bank Owned Foreclosure and Short Sale Data

It has always been our position that for the most part, Manhattan Beach CA Real Estate would hold its value and be fairly immune from depreciating property values pressured from from distressed sales in the form of bank owned foreclosures (REOs) and short sales (short pays). For those buyers subscribing to the urban legend that property values would take a massive hit because the banks are sitting on a huge (shadow) inventory of homes that were all going to flood the market at once, sorry, just not going to happen.

As we experienced in previous real estate downturn cycles, Manhattan Beach homes tend to go down less and come back faster than in the other Beach Cities, the South Bay, and LA County in general. And, there is no way you can extrapolate from the national trends what the effect will be on Manhattan Beach foreclosures.

So, here's a list of the distressed sales so far in 2012 in Manhattan Beach.

BANK OWNED FORECLOSURE LIST



Only 3 Manhattan Beach REO sales through the first five months of the year? By comparison, there were 13 foreclosures sold in Manhattan Beach during 2011 and 21 sold Manhattan Beach REOs during 2010. So, you see where that trend is headed. If you are wondering how many homes sold in Manhattan Beach 90266 so far in 2012, as of this blog post the answer would be 148. So, the foreclosure list is a mere 2% of the total.

Next question, were any of these properties good deals? Let's see.

The townhouse at 632 Manhattan Ave initially came on the market at $818,000, way over priced even considering the sand section location and the small ocean view. Subsequently, the list price was reduced to $712K and this REO was sold for $700K by South Bay Brokers.  That's a price we can live with considering the proximity to downtown, the Pier, the Strand, ocean etc. Downside of that property is that it is only 2 bedrooms and needs updating. But there is a 2 car garage which is very useful on those beach days when you can't find parking.

The foreclosure at 2600 Oak Ave is a small single family house in the tree section that also sold for $700K By small, we're talking about 792 sq ft. Needs updating and Oak backs up to Sepulveda. If a room or two were added plus another bath and that could be done for less than a few hundred thou, maybe makes sense. Sold by Shorewood Realtors.

So that leaves the Nordine listing at 1205 23rd St which has lingered on the market for quite a while previously due to multi year litigation. At the sale price of $1,225,000 it was a pretty good deal considering the size, 3513 sq ft, and the age, built in 2002. It does back up to Marine which definitely dings the price and (at least when we showed it), the "vibe" (house sitter) was maybe not conducive to getting maximum price (in the humble opinion of this blog). Sold by Shorewood Realtors.

MANHATTAN BEACH SHORT SALES







































The short sale list gets far more interesting. For one, this blog thinks that there were some more interesting deals to be had. Plus, there's more of them!

A word about short sales in the current environment.

It is definitely getting much easier to get short sales approved but it is still a 45-60 day process when there is a cooperative seller and the listing agent knows what they are doing. be that as it may, most do not go through for a variety of reasons that are discussed on some of our sister websites such as www.socalupdates.com and Socalistings on Facebook. In general. be wary of buyer paid negotiating fees, "pre-approved" short sales, cash going to the seller or a third party outside of escrow and a variety of other scams and rip offs.

So, there have been 9 short sales so far in 2012 that have closed escrow. That represents 6% of the real estate that has sold so far this year in Manhattan Beach. Compared to 2011 when there were 26 Manhattan Beach short sales and 2010 when there were an astounding 59 Manhattan Beach short sales that closed escrow. So, you see where that trend is going as well.

Were any of these Manhattan Beach short sales good deals?

Well we liked the two at Tennyson because they sold for less than similar units did in 2011 (when they were sold in the $700's). Talk about a complex that has taken a hit, if memory serves those townhouses sold for over $900K when new - and it's an easy walk to McDonalds (or the Shorewood Realtors office).

The condo at 502 Rosecrans was also a good reasonably good deal (if you don't mind living across the street from an oil refinery). At over 1800 sq ft it is only 5 blocks from the beach and the restaurants and shops in the north end of Manhattan Beach.

Not so sure what to think about the short sale at 329 19th St but we have to commend the listing agent for his creative approach: "Banks approved sale at $2,380,000 and have indicated there may be more room." Curious as to the "room"? It sold for $2,295,000  (all cash of course). So $5K is "room" on $2.3M? It isn't even a rounding error. LOL

MANHATTAN BEACH SHADOW INVENTORY

As you can see on the following chart, the Manhattan Beach bank owned foreclosure inventory list is basically a flatline, the real estate scheduled for sale (Trustee Sale Auction) are declining (hence the flatline) and the preforeclosure inventory is spiking. All of which is consistent with what we've seen reflected in the  numbers so far this year: less REO bank owned foreclosures to list, the distressed property market is not made up of more short sales.




Incidentally, taken together the short sales and foreclosure real estate sales in Manhattan Beach so far in 2012 are trending at about 10% of total sales. This is far less than either Hermosa Beach, North Redondo Beach, South Redondo Beach or other South Bay neighborhoods.

Here's a quick snapshot as of today as to what is set to go to auction in Manhattan Beach. It's a pretty fair guess that most of these properties will wind up on the market at some point as "REOs" Real Estate Owned by the bank.  Chances are that not all at once. Currently there are 3 bank owned properties but none listed for sale in Manhattan Beach. 

You can click on this link to bring up the foreclosure map search and search the list of auctions, short sales, and bank owned homes in Manhattan Beach.



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