|Manhattan Beach CA Real Estate Market Update|
Through 11 full months of 2015 we've seen 330 closed transactions in Manhattan Beach. By comparison there were 385 sales during the same time frame last year. During November of this year there were only 22 closed sales down from the run rate of 31 homes sold per month in the ten prior months.
So, is the market softening? Well not exactly. There is less inventory to sell and seller pricing expectations may have surpassed buyer's appetite for investment in some neighborhoods. That is evidenced by the fact that as of the date of this blog post there are 69 active listings for sale in 90266 and 35 properties in escrow.
So based on the actual run rate of 30 sales per month through eleven months we have 2.3 months of inventory on hand and using the "under contract" (UC) calculation, that number is 1.97 months of inventory. So still a "Seller's Market" but not quite as one sided as previously seen.
In fact, of the 35 Manhattan Beach listings in escrow, 15 of them had price reductions and considering the 22 sales in November 14 sold below the last MLS list price. So clearly, Sellers are misinterpreting the market and pricing their homes too high (or their Realtors are in order to get listings).
Which brings me to the absolute number one mistake sellers make and which costs them the most money:
Do not price your home too high!
The old idea of "leaving room to negotiate" is as outdated as that landline you have hanging on the wall. The current crop of Buyers will think that as a Seller you are being "too greedy" and will just wait for the price to drop. Really. I hear this from Buyers all the time.
Let's take a deeper dive into Manhattan Beach November sales.
- 22 Total Sales
- Lowest Priced Sale $742,000
- Highest Priced Sale $4,775,000
- Median Price $2,265,000
- Average Sales Price $2,276,591
- Total Sales Volume $50, 085,000
- 5 Townhouse/Condo Sales
- 17 Single Family Residence (SFR) sales
Here's the breakdown by neighborhood.
MANHATTAN BEACH SAND SECTION
There were fours sales in the Manhattan Beach Sand Section ranging in price from $2.275M up to the highest priced sale of $4.775M. Interesting observation: 3 of the 4 sales were townhomes which all sold for lower than the list price. The one SFR that closed escrow was listed for $4.5M and sold $225K ABOVE that asking price proving once again that the "Gold Standard" is "price your home to sell!"
|Manhattan Beach Sand Section Sales Nov 2015|
MANHATTAN BEACH TREE SECTION
With 8 closed sales during November, the Tree Section remains the hottest neighborhood. No surprise, west of PCH and can walk to downtown or the beach from many homes. What is surprising but in keeping with this this month's theme is that 7 of the 8 SFRs that sold did so below their original list price. The theme being that Sellers have gotten ahead of Buyers as to price expectations.
FYI, of the 35 listings currently in escrow 9 are in the Trees and of the active listings, 14 are in MLS 143 (Tree Section) with 7 of those already having price reductions and the average "DOM" (days on market) being 83.
|Manhattan Beach Tree Section Sales Nov 2015|