Based on some of my most recent blog post titles you might reasonably conclude that I am short on Manhattan Beach Real Estate. Not at all, I am actually quite bullish and think, if anything, Manhattan Beach home prices are still low for luxury coastal CA Real Estate. More on that later. Let's first talk about the feeble sales recorded during January of 2016 and the environment in which we were operating.
Since we all forget rather quickly, let me refresh your memory. January was not the greatest weather and the stock market started off very poorly to say the least. This greatly affected the $3-5M market because in that price range what we most often see are buyers with a significant down payment that is often sourced from the proceeds of a stock sale or other business transaction. The all cash and Powerball buyers typically are over $5M. Basically, if you could afford a mortgage of $5M or more based on your income, most likely you have the cash to just buy the house without a loan.
Sales across the board in the beach Cities including North and South Redondo Beach, Hermosa Beach, and Manhattan Beach were depressed (or depressing) in January. In Manhattan Beach there were 15, not a misprint, fifteen closed escrows. That is down form 21 during the same period of 2015 (-29%) and down from 27 in the prior month of December (-45%). Ouch.
Here's the sales from lowest to highest.
|Manhattan Beach Sales Jan 2016|
By comparison there were 31 closed escrows in North Redondo Beach, 27 in South Redondo Beach, and 10 in Hermosa Beach CA.
Sold prices ranged from $910,000 to $4,375,000. The average selling price was $2,115,333 and the median was $1,770,000. The oldest house was built in 1930 and the newest 2015. Six of the listings sold for over the asking price and 8 below with one at the MLS price.
The three highest priced listings sold were all new construction with 2 being in the Tree Section and one in East Manhattan. Unfortunately one was sold at $1M under the original list price. Possibly listed too high to start but sold for too little at the end. But what do I know.
Here's what I do know.
Great time to be in the market to buy a house in Manhattan Beach CA because as I wrote earlier, compared to other luxury markets and coastal markets, these homes are underpriced. Yes, underpriced.
Let's compare Manhattan Beach to Newport Beach, Laguna Beach, Malibu, and Santa Monica.
- Newport Beach 2015 31 sales over $5M with 4 over $10M topping out at $12,545M
- Laguna Beach 2015 22 sales over $5M with 10 over $10M topping out at $17,500M
- Malibu 2015 43 sales over $5M with 14 over $10M topping out at $15M
- Santa Monica 22 sales over $5M with 2 over $10M topping out at $23M
(Data per the MLS - does not include "off market" sales")
I bet you wouldn't have thought the highest priced sale would be Santa Monica.
By comparison in Manhattan Beach there were 15 sales over $5M with only one over $10M and that was at $14M.
So, we have a high end comparable with these other coastal communities and the top of the market on somewhat comparable footing although not as robust.
You might say I am making an apples to oranges comparison by including Orange County (no pun intended). Fair enough. But even compared to LA County Coastal I believe there is still room to run in Manhattan Beach Real Estate.