Los Angeles Real Estate Blog

The Manhattan Beach CA Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

During the Spring season, Manhattan Beach home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 164 homes for sale in Manhattan Beach and 15 sold. Translation, under current market conditions, in any given month, you have about a 1 in 11 chance of selling your home.

In other words, when pricing your home, the practice of adding a "Pad" or "Cushion" to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today's market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What's Happening:
On March 1, 2008, there were 164 active listings for sale in the Manhattan Beach Market (Area 142-147): 133 Houses; 28 Townhouses; and 3 Condominiums.

In the past year, there were 408 homes sold in Manhattan Beach (between 3.01.07 and 2.29.08): 314 Houses; 93 Townhouses; and 1 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.5 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 152 days, Townhouses will be on the market an average of 108 days, and Condominiums should be on the market an average of 1080 days.

Market Recap for the Month of February 2008
When one compares the February results with the yearly result, we find that there is an approximately 10.9 month inventory of homes for sale in Manhattan Beach.

Broken down by specific property type, we find that there is an 8.9 month inventory of Houses, a 0 month inventory of Townhouses, and a 0 month inventory of Condominiums on the market in Manhattan Beach. (Based on current absorption rates).

How should a Seller approach the market? The key in today's market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the Manhattan Beach and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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Manhattan Beach Home Sales by the Numbers
15 sold in February 2008
26 sold in February 2007

164 Current Active Listings
133 Houses
28 Townhouses
3 Condos

15 Sold in February 2008
15 Houses
0 Townhouses
0 Condos

5 Expired in February 2008
3 Houses
2 Townhouses
0 Condos

37 Contingent & Pending in February 2007
31 Houses
6 Townhouses
0 Condos

26 Sold in February 2007
23 Houses
3 Townhouses
0 Condos

29 Sold in February 2006
22 Houses
6 Townhouses
1 Condos

26 Sold in February 2005
22 Houses
4 Townhouses
0 Condos

30 Sold in February 2004
27 Houses
3 Townhouses
0 Condos

31 Sold in February 2003
25 Houses
6 Townhouses
0 Condos

46 Sold in February 2002
41 Houses
4 Townhouses
1 Condos

31 Sold in February 2001
25 Houses
6 Townhouses
0 Condos

35 Sold in February 2000
30 Houses
4 Townhouses
1 Condos

6 Expired in February 2007
3 Houses
3 Townhouses
0 Condos

8 Expired in February 2006
6 Houses
2 Townhouses
0 Condos

6 Expired in February 2005
4 Houses
2 Townhouses
0 Condos

4 Expired in February 2004
4 Houses
0 Townhouses
0 Condos

10 Expired in February 2003
6 Houses
4 Townhouses
0 Condos

8 Expired in February 2002
8 Houses
0 Townhouses
0 Condos

4 Expired in February 2001
4 Houses
0 Townhouses
0 Condos

7 Expired in February 2000
5 Houses
2 Townhouses
0 Condos

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About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com