Manhattan Beach Real Estate | Market Report and Home Price Index

So here's a tale of 2 South Bay Beach Cities or more accurately a home price index of Manhattan Beach and Hermosa Beach. (Please note - these numbers are for Single Family Residences only.)

The reason I post this is because as more and more buyers have been priced out of 90266, they start to look at 90254. Fair comparison? Maybe, maybe not. Manhattan Beach will always be more desirable, expensive and prestigious exemplifying one of the most sought after Southern CA luxury beach housing markets. But Hermosa has changed and is not far behind in many regards.


Here's a few trends I notice - or at least my interpretation of the data. Always curious to hear your thoughts too.

While Hermosa Beach showed a very healthy year over year median price increase of 19%, Manhattan Beach showed off the charts (and most likely unsustainable) gains of 33%. Let's think about that in real numbers for a second. A house bought in Manhattan Beach a year ago for $2M would be worth $2.6M today. Sounds about right to me. Here's why this trend is not sustainable. There just aren't that many buyers who will be able to afford the same house at over $3M next year.

We might already be seeing this reflected in the months of inventory on hand which as of the end of June stood at 4 months which is trending more towards a balanced market than a seller's market. We also see an increase in the properties for sale in Manhattan Beach. Just more on the market right now.

Hermosa Beach has seen the trend in reverse with 4 months of inventory becoming 3. In fact, right now I would expect to see Hermosa SFR prices spike somewhat as the pricing differential is so great and there are fewer available homes for sale than in Manhattan Beach.


Comments