While most of the homes in Manhattan Beach CA are SFRs, you will also find some condominiums for sale. By condominiums, we are referring both to the flat style (apartment) units, of which there are not very many as well as townhomes, both attached and detached. In fact, many of the stand alone properties you see in the Manhattan Beach Sand Section are condos even though they are freestanding buildings.
Year to date there have been 275 closed sales in Manhattan Beach. Of those 62 have been condo or townhouse. That's 22.5% of the market. Currently of 68 active listings 9 are condo or townhouse. That's 13% of the market and is what we are seeing in the graph below. I have a few thoughts as to why this is happening which are entirely subjective and speculation.
- Many of these properties can easily be turned into very lucrative rental units, either full time or short term (Airbnb or VRBO) whether the later is "legal" or not.
- There were a number of units acquired at the height of the market (peak purchase) and the equity may not be there yet to sell. While SFRs have done extremely well in 90266, the data we are seeing isn't as positive for the townhouse market.
- Loans are more difficult for townhomes in the super jumbo market.
Further complicating this is the fact that while the properties in Manhattan Village are for all intents and purposes condos, their legal description is "PUD" Planned Unit Development which lenders treat as SFRS for loan purposes. Got that?
With the decline in inventory, it is no surprise that for condo homeowners in Manhattan Beach it is a "Seller's Market".
If you like this type of analysis I have posted similar data for Redondo Beach and Hermosa Beach CA.