Over the years I have kept a running tally of the number of single family homes that close escrow each month.  I haven't included townhomes or condo sales as they are a small part of the Manhattan Beach home sales and they tend to fluctuate more than single family homes.  In Redondo Beach it would be the exact opposite as townhomes and condos make up the major share of that market.

The difference in the volume of home sales as well as the prices over the last 11 years makes for some interesting comparisons.  It is easy to see that while prices started their upswing in 2003; 2005 was the year prices took a major leap and 2007 was the year volume took a hit.   Prices began their dive in 2008 with 2009 being the toughest year for Manhattan Beach home sales.

Both prices and the number of sales bounced up and down in  2010 and 2011 as the market looked for stability.  The big question for buyers and sellers is whether this will be the year the market finally finds stability and begins to trend up instead of down. 


Manhattan Beach Home Sales: January-June 2000-2011







Manhattan Beach Home Sales: July-December 2000-2011

December home sales were definitely nothing to brag about but compared to  closed sales from other months in 2011 it could have been worse.   2011 was not a stellar year for Manhattan Beach Real Estate by any measure but then  it wasn't a total flop either.  320 homes and 75 townhomes sold last year  in Manhattan Beach at a time when much of the country and some neighboring communities remain sunk in the doldrums of a housing market that just can't seem to find any traction.

Inventory remains low but if the number of new listings on the Broker Open tour for Manhattan and Hermosa Beach is any indication we may be seeing a lot more homes hit the market soon.  Typically we don't see a lot of new inventory until after Super Bowl Sunday but this year might be an exception. 

Along with  some sharp new listings there were a number of homes that have returned to the market after taking a hiatus  last year.   While there were a few homes that made you wonder about the price was picked  most of the new entries seemed to priced near  market.  This bodes well for the coming year as more sellers seem to be accepting the realities of the market. 


Manhattan Beach: Sold December 2011

 

For the last few years I have shared my thoughts about where I thought the market was headed each year... and this year is no exception.   Making predictions is easy, the difficult part is finding out close your ideas were to reality. 

Last year I thought the market would be very similar to the one in 2009 and I was  fairly accurate.  Truthfully I don't see much change in 2012.  I believe sales will continue to be slow but steady and prices will be flat with a few sub markets markets declining and a few showing increases in value.  . 

Nationally the economy appears to be growing.  The final numbers won't be available for a few more weeks.  Retailers and others are counting on a strong surge in spending in recent weeks  as an indication that we are moving forward.  California's unemployment rate dipped to 11.7% in recent weeks which is still very high but at least it is finally moving in the right direction.  Nationally the rate dropped to 8.6%.   Whether the trend continues down is another issue that all the Presidential  candidates will discuss at length I'm sure. 

Unfortunately there are issues that will affect our economy over the coming months.  Just as we were beginning to see a measure of stability in our country the European nations are showing signs of real problems.  China is also facing economic problems.  As our major creditor this could have an effect on our economic progress.    Like it or not we have become a global economy. 

The Government says the problems faced by the ongoing housing crisis are a high priority but new Federal regulations and guidelines add to the problems. What Bozo thought that adding a tax on mortgages for 10 years to fund the "payroll tax cut" for 2 months was a smart idea. All we need is more of that  brilliant thinking  to make sure the housing market continues to flounder.





Manhattan Beach-Beach Cities Real Estate...

The final sale numbers won't be in until next week but it looks as if  the number of  sales in Manhattan Beach and South Redondo  increased  while they decreased in Hermosa Beach, El Segundo and North Redondo. If the traffic at the local Malls was  any indication of how people were viewing the economy...  things are looking up.   The  Neptunian Womans Club Gift Wrap station at  The Manhattan Village Mall was busier than it has been for the last 4 years.

Our local real estate market saw an increase in the number of distressed ( foreclosure, short sales and pre-foreclosure) property sales in all  the Beach Cities.  Manhattan Beach had the least with about 10%  distressed  sales and North Redondo saw the highest with 21% of closed sales. 

In October the conforming loan amount officially declined from $729,750 to $625,500.  The change didn't take effect until October but lenders stopped making loans at the higher amount  around the end of August.  While the decrease didn't really affect Manhattan Beach it definitely had an effect on the other Beach Cities.   I don't believe it is a coincidence that prices on short sale townhomes in North Redondo dropped significantly at the same time.

I don't think we will see a major change in most of the South Bay real estate markets in 2012 from 2011. Prices will  bounce around as buyers remain cautious.   Manhattan Beach  home prices have been the most stable of all the Beach Cities.  I believe that trend will continue.  North Redondo will likely be plagued by short sales that will push the market down a bit.  Hermosa Beach, South Redondo and El Segundo may well see an uptick in short sales as lenders decide it might be more prudent to  clear their books rather than continuing to delay the inevitable. 

 If interest rates remain stable you could see an increase in entry level prices in Manhattan Beach.  This will hold true if more builders decide to take the plunge and start buying lots.  I know of  a number of agents who are actively looking for buildable lots and fixers in Manhattan Beach.    I don't  think you will see much new construction  in the other Beach Cities  for awhile although there have been a few new projects in North Redondo.

 Obtaining a new loan continues to be difficult.  property prices in the South bay-beach Cities remain high despite the declines in value.  many entry level properties will require Jumbo loans with the drop in conforming loan rates.  New FHA limits will help buyers  but many of their rules discourage folks who don't want to pay the upfront fees required by FHA..  Refinancing your home can take months.  Appraisal issues haven't gone away as out of area appraisers are used by many lenders even though there have been changes to the original law.


While overall Manhattan Beach and the Beach Cities have had fewer problems than many other communities in LA County we are at the mercy of  conditions we have no control over. Many homeowners have been holding on with a tenuous grip as the economy has remained precarious for  longer than expected.   Some good news in the economy would be a welcome sign for everyone.

Farmer's Market... El Segundo


November sale numbers were similar to those of October for most of the Beach Cities.  While the number of sales was relatively consistent prices were all over the map. The hardest hit city in the Beach Cities was North Redondo.   After months of not much action, North Redondo got clobbered by short sales  beginning in September.  Sellers dropped prices drastically hoping to finally get the attention of lenders who didn't appear to be in any rush to approve a sale.  


The tactic seemed to work... There are currently 61 pending sales in North Redondo with inventory at 79 properties for sale.  The final figures for December 2011 will be out next week but so far lenders may be cooperating as they also would like to see a number of these properties close escrow soon rather than later.

Th rest of the Beach Cities... El Segundo, Hermosa, Manhattan and South Redondo are seeing sale  numbers holding at consistent levels and prices flat or moving downward  slightly. 


South Bay-Beach Cities: Sold November 2011
 

Manhattan Beach Home and Townhome Closed Sales November 2007-2011




Manhattan Beach Home/Townhome prices November 2007-2011


What a year for Manhattan Beach Real Estate with enough ups and downs to keep us on our toes.  Next week the final closed sales for December will be posted but so far the numbers are similar to those for 2010.  

Single family Home prices in Manhattan Beach  managed to creep up a bit in November compared to the median price last November. Townhome and condos sales didn't fare as well.   The trend continues with  sale numbers moving up while prices stay flat or slightly down from previous years. 

Inventory is at the lowest level in along time with 61 single family homes and  27 townhomes/condos on the market.    New construction is minimal with just a few builders taking the plunge while the majority are still waiting to see what the new year will bring.

Manhattan Beach: Sold November 2011