Manhattan Beach, California

   Please take a walk with me in my lovely city by the sea......

Manhattan Beach is located on the Pacific Ocean about 3.5 miles south of Los Angeles International Airport.

Manhattan Beach was incorporated on  December 7, 1912 after some whispers in the ears of the husbands of the ladies of the Neptunian Woman's club.  These special women also started the first library and the first school in our city.  The current Pier was completed in 1920 and is  the oldest cement pier on the west coast. 

In the beginning the city consisted of a few small beach cottages on huge sand dunes that dotted the landscape.  There was no Strand walkway along the beach.  The Santa Fe Railroad ran along the coast through Manhattan  to the Wharf in Redondo at about where the Strand is today. The higher part of the Strand that runs through Manhattan Beach owes much  to the sand dunes that used to make up the beach front and the old Railroad tracks.  Manhattan Beach had so much sand  from the dunes that in the 1920's Kuhn Bros. construction and the territory of Hawaii made a deal where the sand from Manhattan Beach was shipped to Waikiki. 

In Polliwog Park  one of the original homes, built in  1905, has been preserved.  The home is open on weekends and is staffed by a member of the historical society.   More information on the history on Manhattan Beach can be found at  the Historical Society site.

Manhattan Beach is ideally located.  We are close to Santa Monica on the Westside, Century City financial offices and about 20 miles from downtown Los Angeles.  The 405, 105 and 91 Freeways are just minutes from Manhattan Beach.

The city is 3.88 miles square with 2.1 miles of coastline.  Approximately half of the city land is devoted to residential use. The 2000 census put the population close to 34,000.  Our population is a diverse mixture.  We have new people moving to our town each day and older residents who have lived here all their lives.   We have the downtown area with casual beach shops, restaurants and the new Metlox Center. The Manhattan Mall shopping center with theatres and major chain stores is located on Sepulveda.  Along Rosecrans Ave there are restaurants,offices, stores and a new Shopping center at the corner of Rosecrans and Sepulveda.  Technically all building on the north side of Rosecrans is in El Segundo. 

Manhattan Beach Schools are some of the best in California.  The high test scores have brought many families to our community.  We have five elementary schools, one Intermediate School and one High School.   We are proud of our students and teachers and their consistent high levels of scholarship.

Manhattan Beach is the most expensive of the Beach Cities that make up our South Bay Community.   There is almost no vacant land left in the city.  Most new homes are built on property where an older home was torn down.  The city is made up of 5 neighborhoods:

The Sand Section (MLS area 142)  Search for Homes and townhomes/condos

This includes El Porto and runs south to Hermosa Bbeach and is west of Valley drive

The Tree Section ( MLS area 143) Search for homes and townhomes/condos

The Tree section is south of Rosecrans to Manhattan Beach Blvd and is east of Valley Drive and west of Sepulveda

The Hill Section (MLS area 144) Search for homes and townhomes/condos

The Hill Section is west of Sepulveda, South of Manhattan Beach Blvd, North of Longfellow and east of Valley Drive

Manhattan Village (MLS area 145) Search for homes and townhomes/condos

This is the gated housing area between Marine and Rosecrans behind the Manhattan Beach Mall

Manhattan Heights (MLS area 146)  Search for homes and townhomes/condos

Manhattan Heights is  south of Marine, north of Manhattan Beach Blvd, east of Sepulveda and west of Aviation

Mira Costa (MLS area 147)  Search for homes and townhomes/condos

Mira Costa is south of Manhattan Beach Blvd., north of Artesia, west of Sepulveda and west of Aviation.

The value of many older and smaller homes in Manhattan Beach is in the land.  Manhattan Beach is built out with almost no vacant land available for new homes.  There is often not much difference in value between a tear down home and an entry level home because of the lack of land.   Most homes in the sand section near the water are on small lots usually 30x90 .  In the tree section the lots vary in size from 40x 135  to 40x112 and  the average size which is 40x116.  In East Manhattan Beach   most of the lots are 50x150 .. in Manhattan Heights there are a number of lots that are 50x 100.. Most of these are east of Redondo Ave in the Liberty Village neighborhood.  Condos and townhomes are more affordable then single family homes due to the high cost of land in our city.

Our lifestyle is Beach Casual.  Many of the things residents enjoy have to do with our close proximity to the ocean.  Walking downtown and strolling along the Strand is a favorite week end activity.  Surfing is a passion for young and old.  Riding the waves is still a great sport no matter what your age.  Volleyball is played along the beach from El Segundo to South Redondo.  The Hometown Fair is in October and starts with a 10K race that runs through the city. The Fair is adult and kid friendly. If you stroll through the Fair you  eventually will  everyone you know.  The Marine Lab at the end of the Pier offers residents and visitors a chance to become familiar with the various life forms that populate our oceans.   The Manhattan Beach Mall on Sepulveda  has  a number restaurants, shops, Macys, Ralphs Supermarket and CVS Drug store.  

School District

The  public schools in Manhattan Beach are some of the best in the state. There are 5 elementary schools, 1 intermediate and 1 high school in Manhattan Beach.  Test scores are are consistently high and most of our graduates go to a University or College.  

Library

The library is conveniently located in downtown Manhattan Beach next to City Hall and the Fire Department in the Civic Center.  The library is scheduled to be upgraded as soon as funds become available.  The Neptunian Woman's Club has taken on the task of raising funds for the renovation of the library.

City of Manhattan Beach
MEETINGS:
City Council: First and third Tuesday at 6:30 PM
Planning Commission: Second and fourth Wednesday at 6:30 PM
Parks and Recreation: fourth Thursday at 6:30 PM
Cultural Arts Commission: Second Tuesday at 6:00PM Library Commission: Second Monday at 6:30 PM
Parking and Public Improvement: Fourth Thursday at 6:30 PM

Why closing escrow on your South Bay-Beach City home may have gotten tougher.....

It seems that the folks in D.C. are still very busy trying to close the barn door ... long after the barn has burned down. While I give them marks on one hand for trying to fix a number of problems within the home lending sector ... you have to wonder if they actually give much thought to how changes in laws will affect real people. You also have to wonder why they don't fix the biggest problem in the industry... the lack of regulation of the fees charged by lenders to borrowers. While there has been lots of talk over the years about regulation nothing ever seems to make it out of committee.

The Mortgage Disclosure Improvement Act contains some major changes that may affect your escrow closing date on all loans that are covered under RESPA related to an owner occupied residence. The second change covers new regulations concerning the financial information you provide to your lender if you are obtaining a conforming loan.

Changes to Truth in Lending:

Starting on July 30, 2009 the following changes will be implemented:

1. Within 3 business days a lender must provide a borrower an initial good faith estimate of the terms of the loan and the lenders charges.... however a lender must now wait a minimum of 7 business days after the initial disclosure is sent to close the loan.

2. If the initial good faith estimate changes because... the interest rate goes up or down by more then 0.125% or there is a change in the fees the borrower is charged by $100 or more... then a new disclosure must be given to the borrower and the escrow can't close until at least 3 business days after the borrower has received the revised disclosure. There are a number of items that can trigger either of the above situations and extend the escrow period by 5-6 days.

This may not seem like a big deal... but if you have locked in a specific loan rate and your lock is set to expire and you suddenly have to do a new disclosure it could be very expensive if you have to extend the rate. This could also raise some issues if you are buying a home that is part of an exchange... the rules are very specific about closing dates and a late closing could create tax consequences for a seller.

I expect that what will happen is that buyers and sellers are going to have to make some major compromises on closing dates and taking possession if there is even a hint that the original estimate might be changed.

Income and asset documentation changes:

The second change will go into effect on September 1, 2009. The changes will affect credit scores, income calculations, income from stocks bonds and mutual funds, asset documentation, retirement assets and trailing spouse income. There will also be major changes in the requirements on owner occupied 2 unit properties. You will need more money down and higher FICO scores.

Here are a few highlights:

1. Credit, income and asset documentation can't be older then 90 days. So if you got qualified in March you would need to submit new information by July.

2. Lenders now must compare your filed Federal tax return to the income you are stating. Pay stubs will not be enough by themselves.

3. If your spouse is a trailing spouse and doesn't have verifiable new employment on the date you move you can't count the expected income until the spouse actually has a job.

4. You can now only use 70% of the value of your Stocks, bonds and mutual funds assets... previously you could use 100% of the value.

5. If you are retired then you can only count 60% of your retirement assets rather then 70%.

While many of the changes being enacted by Congress are meant to curb previous excesses as we saw with the change in Appraisal rules... sometimes good intentions are not enough.

In March I wrote a post about government online help for homeowners who needed information about refinancing or loan modification. While the government site can be helpful many homeowners have found that the information there may not have quite fit their situation.

Lew Sichelman is a Washington D.C. columnist who writes a terrific weekly column called The Housing Scene that is usually found in the LA Times Sunday Real Estate section. Lew always provides excellent information for buyers, sellers and even real estate agents. If you don't take the LA Times Sunday edition check out his columns online... you will be glad you did.

Once again Lew offers good advice for homeowners who need mortgage information and or help with their current loans. The guys who gave you FICO scores, Fair Issac, are now offering online help for homeowners who are in trouble with their mortgages. Lew not only gives details about the program but also offers some sage advice to owners who are in trouble and looking for help. Even if you are not having mortgage issues there is a lot of good information for homeowners.

If you are in trouble with your mortgage or think you may have a problem in the future I strongly suggest you read the article. It may save you a lot of grief... not to mention money. I am always happy to answer questions offline for those with specific issues.

Days on Market: April 2009

According to the MLS, March saw 23 homes and 5 townhomes close escrow*. Currently there are 178 homes and 44 townhomes for sale in Manhattan Beach. There are 39 homes and 11 townhomes in escrow.

The Sand section seems to be the main point of activity this month with 15 homes and 8 townhomes going in escrow. 9 of the 15 homes are priced over $2 million and 7 of the sales went into escrow after April 1, 2009. The big question will be how many actually close escrow. As buyers get smarter about what they need to have in order to qualify and as more loan programs open up I suspect we will see a larger percentage of pending sales close escrow.

At the other end of the spectrum there are 10 properties in escrow under $1 million. A number of these homes sat on the market for months before finally going into escrow. You can expect to see more price reductions and homes selling in the $600,000 range in east Manhattan. A home on the corner of Marine and Aviation closed escrow at $480,000 in March.

Manhattan Beach: Market Snapshot April 14, 2009

Manhattan Beach: Price Ranges April 14, 2009

 Manhattan Beach: Market Snapshot March 14, 2009

Manhattan Beach: Market Snapshot February 10, 2009

 Manhattan Beach: Market Snapshot January 19, 2009

 Manhattan Beach: Market Snapshot December 4, 2008

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008

Manhattan Beach: Market Snapshot March 13, 2008

Manhattan Beach: Market Snapshot February 26, 2008

Manhattan Beach, CA: Market Snapshot February 11, 2008

*There are a few more sales and pending sales not on the MLS that are not included in the graphs.

Days on market (DOM) March 14, 2009

Inventory continues to creep up with 188 homes and 49 townhomes listed for sale on the MLS in Manhattan Beach. In February 17 homes and 3 townhomes closed escrow which was much better then January numbers. Since March 1, 2009... 5 homes and 3 townhomes have closed escrow while 12 homes and 1 townhome have gone into escrow. Certainly these numbers are not earth shaking but they are better then November-January numbers.

The big surprise is the increase in homes for sale under $1 million... there are 30 on the market. Most buyers in this price range are waiting for Fannie and Freddie to get their act together and begin allowing lenders to fund loans up to $729,750. It seems very strange that a program that was in effect until November of 2008 can't seem to get funding started again just a few months later. Then again when you consider the source I guess it's no real surprise.

On the other end of the spectrum there are 29 homes on the market priced over $4 million. This is a big bump in inventory in the higher price levels. I'm guessing more then a few long term owners want to cash out at 15% rather then 20% capital gain. In those price ranges that 5% is a chunk of change.

There are some real issues with Fannie and Freddie guidelines about condominium /townhome projects that I will address in a future post. A word to the wise...if you are currently living in a 2 on a lot townhome and you do not have an active association you should talk with an attorney about getting one up and running ASAP if you intend to sell in the next year. The new guidelines will mainly apply on loans of $729,750 or less but I'm betting lenders are going to want to see reserves and active associations even on loans above that amount.

Manhattan Beach: Market Snapshot March 14, 2009(click to enlarge graph)

Manhattan Beach: Price Ranges March 14, 2009

Manhattan Beach: Market Snapshot February 10, 2009

Manhattan Beach CA: Market Snapshot January 19, 2009

Manhattan Beach: Market Snapshot December 4, 2008

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008

Manhattan Beach: Market Snapshot March 13, 2008

Manhattan Beach: Market Snapshot February 26, 2008

Manhattan Beach, CA: Market Snapshot February 11, 2008

Manhattan Beach, CA: Market Snapshot December 12, 2007

Manhattan Beach: Market Snapshot November 8, 2007

Manhattan Beach: Market Snapshot October 12, 2007

Manhattan Beach: Market Snapshot September 29, 2007

Manhattan Beach: Market Snapshot September 15, 2007

Manhattan Beach: Market Snapshot August 25, 2007

Manhattan Beach: Market Snapshot July 18, 2007

Manhattan Beach: Market Snapshot June 25, 2007

Manhattan Beach: Market Snapshot June 2, 2007

Manhattan Beach: Market Snapshot May 6, 2007

Manhattan Beach: Market Snapshot April 23, 2007