Well now that 2015 is over and we're not that far along into 2016 yet, let's take a quick look at how Manhattan Beach Real Estate performed last year.
There were 357 closed sales in Manhattan Beach CA during 2015. That compares with 223 in Hermosa Beach, North Redondo Beach 534, and South Redondo Beach 421 sales.
Here's what many readers may be surprised to find considering that we are supposedly in a housing recover: year over Year Sales declined in Manhattan Beach compared to 2014 when there were 422 closed escrows in 2014. That 65 unit decrease is equivalent to about a 15.5% drop off in total sales.
In fact, Zillow considers the Manhattan Beach Market to be "cool" even though their calculations show a 14.4% price increase with another 5.21 predicted for this year. My calculations indicate a 30% increase from the market bottom for some properties.
So, what's going on? Great question and I'm glad you asked.
- Low Inventory: There simply has not been enough properties on the market to satisfy demand. Or rather, enough properties that are reasonably priced to sell. Why?
- Unreasonable Seller Expectations: Many home owners have simply gotten ahead of the market in terms of their pricing. The classic tongue in cheek example I usually give is that when a Seller hears that the market has gone up 20% they want to add another 20% on top of the last comp to their price and then some more to "leave room to negotiate".
In some ways other neighborhoods such as Hermosa Beach, South Redondo Beach and even El Segundo have benefitted as buyers priced out of Manhattan Beach have pursued not necessarily a lower price point but more for their money at a specific price point. And with the median being around $2.45M, there's lots of room to work with. (That being said, Manhattan Beach still leads the luxury market space in the Beach Cities by a wide margin.)
|ZIllow Pricing Index Manhattan Beach|
FYI, here's how Zillow defines the "Market Temperature".
Based on three metrics—sale-to-list price ratio, the prevalence of price cuts on home listings, and time-on-market—the provides information on the current balance of bargaining power between buyers and sellers in this zip code relative to other zip codes in the same metropolitan area. A particular zip code may be identified as a good market for buyers in a metro market favorable to sellers overall.
I really enjoyed this fun Manhattan Beach video. Hope you do too!