Writing this blog has been fun and the readership continues to grow, thank you very much. There have been a few requests for me to address a handful of topics and I hope to cover them over the next week or so. One friend wonders what has been happening with the hill section of Manhattan Beach as far as sales activity goes. Many of the homes in the hill section have ocean views or city views of Los Angeles and other points north. Homes tend to be larger with square footage typically ranging between 3,000 to 4,000 sq ft. The lots are often much larger than lots in the sand section and so the area tends to be preferred by those wanting added privacy.
Back in 2001, there were 33 sales of single family homes with an average sales price of $1.5 M. In the following year the number of sales shot up to 53 while the average price remained the same. Over the next six years the number of units sold gradually declined until hitting a bottom in 2008 with only 17 sales. This year, thankfully, the number is trending upwards again. For the few years after 2002, the average sales price increased every year by at least 18 percent. It held steady through 2008, but dropped by about eight percent this year. This is, for the most part, a reflection of what has been happening in the overall Manhattan Beach area and the other beach cities. In 2008, the number of units sold and the average sales prices both dropped in all areas.
The inventory of unsold homes stands at about one year. Interestingly, the average listing price of $3.3 M for these single family homes is a full 40 percent over what the average selling price for hill section homes that have sold has been this year-to-date. Given the relatively high supply of homes for sale and their premium listing prices, I would not be surprised if many of the final sales prices drop by five or more percent. This is worth watching over the next few months.
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Posted by Tony Cordi 
The Blog for Beachtime Realty 