Summer is coming to an end and it is time to see what is going on in Manhattan Beach west of PCH. After the traditionally busy spring season and slow summer months, we can see how the year is shaping up and what can be expected in the coming fall season.
Sand Section
The Sand Section represents two thirds of the available inventory west of PCH today. The theme of higher inventory levels has continued since 2016. Although inventory might be a bit concerning if you are a seller, there have actually been 73 sales to date for 2017 versus the 61 sales in same period last year.
My blog (The South Bay is Crowded at the Top) questioned he high-end market as there was a trend softness with only five sales over $5 million in the Sand Section at end of summer last year. But fear not, as the high-end has bucked last year’s softness where 2017 has yielded 14 sales in that same range. Wow!
These are all stable signs for the Sand Section but it can still feel uncomfortable in certain assets by the water. Take for instance new construction walk-street homes in the 100-200 block selling in the $9 millions like 205 20th Street ($9,475,000), 125 2nd Street ($9,241,000), and 200 16th Street ($9,000,000) that sold in 2015 and 2016….but last month the beautiful 132 16th Street sold for only $8 million.
The Sand Section is just fine and the data proves better than 2016, however, it is not the same market that we some expect. There are still many options for buyers and most sellers taking reductions to get a deal done.
Tree Section
The Tree Section has had a solid year, especially for new construction. Quite honestly, I was a little worried with the new construction inventory a year ago along with what was coming to market. Nonetheless, buyers have continued to gobble up new builds in the Trees.
If you read my post from January (Tree Section is Forming Lot Value for 2017), most new construction on your standard 4,400 – 4,800 sq. ft. lots have traded in my predicted range of $2.8 million to $3.3 million. See 2201 Oak Ave, 3312 N Poinsettia, and 2512 Palm Ave.
Prime Tree Section locations with over-the-top builds have sold $1 million higher (like 605 29th Street and 724 30th Street for $4.5 million each pre-completion). Additionally, the area continues to stay strong with sales like 719 19th Street at $6.5 million in the martyrs neighborhood.
The Tree Section has performed very well in 2017 and continues to be a healthy market.
Hill Section
The Hill Section has had a fantastic 2017 thus far. Currently, year-to-date the Hill Section inventory stands at only 2.24 months. There are seven homes on the market, five in escrow, and 25 completed sales this year. Hill property has been moving, lot sales have been strong, and this…the massive $20 million record sale at 814 Pacific Avenue completed just this month supports this hot area.
It could be argued that The Hill section is the strongest portion of the entire Manhattan Beach market. More development is planned which is a bullish sign for the area…if the market continues as-is, expect to see an uptick in prices to close out the year and drive value into 2018.
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]