|Homes Sold in Manhattan Beach Feb 2016|
Now that February sales are in we have some indication of how the Manhattan Beach housing market is shaping up for 2016.
There were 21 closed escrows in 90266 during February. This is up from 19 during the same time period (well it wasn't a Leap Year) during 2015 and up from 15 during January of 2016. So things are looking good, right? Well maybe, maybe not.
Sold properties ranged from $920K up to an even $9M. The median price was $1,850,000 and the average selling price was $2,658,333. Curiously the median is lower than it was through a number of months last year but the average is higher.
Here's a few red flags for me as to what is going on.
First, look at the number of properties that had price reductions during February. Fifteen out of 21 needed to be reduced to sell. Now some of that I can chalk up to properties that closed during May have well been on the market during December and January when things were slow even for a slow season. My next red flag is that the average days on market was 68. So a little longer than 2 months plus price reductions not a good sign or trend no matter what the reason.
As we enter March, there are 51 homes in escrow in Manhattan Beach (MLS status backup or pending). But as of this morning there are 85 active listings. So inventory is piling up and that leads to price reductions. In fact, 19 of the current active listings have had price reductions (22%) and the average days on market of current listings is 62.
By my usual calculation I would say that Manhattan Beach is not longer a Seller's market based on the sold vs active calculation or absorption rate.
Of course that can all change rather abruptly as more Buyers enter the market during the height of the traditional buying season.