The Mermaid in Hermosa.... Back on the market ..asking price $25,000,000  

Home sales in the Beach Cities are not spectacular but they do seem to be fairly steady. North and South Redondo saw townhome sales almost double in May. Manhattan Beach saw roughly the same number of sales as the previous month with townhome sales increasing although home sales were less the April numbers. All the Beach Cities are seeing increases in pending sales so the numbers over the next 60 days should remain fairly stable.

Interest rates are bouncing all over the place. Last week's Bank Rate Index experts thought rates might go down but so far they are not reacting as the market had expected. Threats of bombing Iran and $200 oil prices tend to muddy the waters just a tick.

Despite all the angst in the marketplace our little slice of heaven just seems to go along with out any major disasters. Prices are definitely down but not in freefall. Sales are slow but seem to be pretty steady averaging about one per day in most cities. Looks as if even the entry level homes are begining to see some movement. Builders are still out of the market giving entry level buyers an opportunity to purchase without competition from them.

If we stay out of a new war zone, get a grip on energy prices and keep the economy on a level keel we may just weather this storm intact... or at least that's the theory.

South Bay-Beach Cities: Sold May 2008

South Bay-Beach Cities: Sold April 2008

South Bay-Beach Cities: SOLD March 2008

South Bay-Beach Cities: Sold February 2008

South Bay-Beach Cities: Sold January 2008

South Bay-Beach Cities: Sold November 2007

South Bay-Beach Cities: October SOLD 2007

South Bay-Beach Cities: September SOLD 2007

South Bay-Beach Cities: August SOLD 2007

South Bay- Beach Cities: July Sold 2007

South Bay-Beach Cities: Sold June 2007

South Bay-Beach Cities: Sold May 2007

South Bay-Beach Cities: Sold April 2007

South Bay-Beach Cities: Sold March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

3612 Poinsettia Manhattan Beach


In the last few months I've written posts on Starter Homes in Manhattan Beach , Prices not crashing .... no kidding and buyers and sellers Thinking Outside the Box along with a number of other posts on Manhattan Beach real estate. These posts were about the market in general and often about my listing on 3612 Poinsettia in particular. Many who commented on these posts blasted me on everything from home prices in Manhattan Beach to my general lack of knowledge about the declining real estate market. The bottom was going to fall out of the local housing market and Poinsettia was wildly overpriced at $849,000.



But a funny thing happened a month ago. Suddenly 3612 Poinsettia was not the wallflower at the prom. Poinsettia was on the short list for Prom Queen. The property was being shown many times every day. Not only did we wind up with multiple offers but it went within a matter of days and I had to turn away of number of people who wanted to make offers. I won't release the sales price until the house closes escrow in July but I will share a bit about the sale.


First the deal is very solid with the buyers having a huge down payment well in excess of the standard 20%. The agreed price is very close to full price. The buyers have released all contingencies. I'm still receiving calls from people who want to make an offer if it falls out of escrow and are not blinking when I tell them they have to look at full price or more. People are now making comments about what a great little home it is and how lovely and private the yard is compared to many others in the same price range.


Buyers who made low ball offers suddenly found themselves wanting a chance to increase their price to whatever we wanted. The buyers who offered the winning bid didn't mess around with multiple low offers. They wanted the house and recognized the value of the property and made their offer accordingly. 3612 Poinsettia went from mouse to Prom Queen in less then a week.



So what's the point of this little tale? It's pretty simple.. you have to know what is happening in your local market. The buyers who lost on this home were those who paid too much attention to what was happening in markets outside the Beach Cities and Manhattan Beach. The buyers are local people. They grew up here. They are going to live in this house and make changes as their life changes. They bought the home they could afford in the location they wanted. They bought an entry level home that they will turn into the home of their dreams over time. They absolutely love this home. In 5-7 years they will be considered "lucky" to have bought at such a cheap price.



Starter homes that were scoffed at 3 months ago as overpriced are quietly selling. Smart buyers are taking advantage of rates that are still on the low side and sellers who are pricing homes to sell. One by one these homes are moving as buyers begin to realize that Manhattan Beach and the Beach Cities are some of the best places to live in Los Angeles County.



This doesn't mean you should buy a home if you are not ready to buy. What it does mean is that if you are financially stable and are planning to buy in the next few months you might want to take a look at what is happening in the local city where you want to live. There are good prices on a lot of property in Manhattan, Hermosa, Redondo and El Segundo.

Affordable townhome in South Redondo just blocks to the Pier and beach..

Public Open House: Sunday 1-4 pm

This is a delightful home with hardwood floors and a new kitchen. There are 2 bedrooms.. each with private bath. The upper level features a "great room" style living area and a powder room.. The kitchen has been totally remodeled with granite counters and tile floors. Each bedroom has a private patio and there are two additional decks off the living room and kitchen.

The property is priced to sell at $624,500.

Please join me Sunday to view this wonderful home. For a private viewing please call me at 310-721-7438 or e-mail me.

June is mostly about graduation and weddings ...which historically makes it  a slow real estate month in Manhattan Beach and the Beach Cities.   But after a wild ride with the credit markets last fall this June seems to be holding up fairly well all things considered.    There are 164 homes for sale, 46 pending sales and 16 closed home sales since June 1, 2008.  There are 31 townhomes/condos for sale, 10 pending sales and 6 closed sales since June 1, 2008.  Not bad considering the time of year and the overall market in California.   I suspect that overall home sales in Manhattan Beach will be similar to those of April and May by the end of the month.

This is nothing to run home and crow about but it is steady which is very important in a market like the one we see today.  Higher volume would be nice but consistency is the key to the health of our Manhattan Beach real estate market.  We are not going to see the home sale volume numbers like those from 2002-2005 anytime soon.  Nor will we see prices and appreciation like those for a long time.  But that doesn't mean you should count out the Manhattan Beach home market.  I've been following many of the discussions on Manhattan Beach Confidential, our local consumer blog.  One of the things I found interesting was the number of people who are trying to predict this market using numbers from the 1990's when a majority of those working in the aerospace company lost their jobs becuase  the cold war ended. 

This market is not like the one in the 90's.  it may turn that way if we see some major job losses but so far that is not on the horizon. Predicting trends in this market based on what happened in the 90's is like trying to predict the weather next winter based on what happened 10 years ago.  You might get close but the chances are good you will not be very accurate.  The same is true in today's real estate market.  So far Manhattan Beach has not followed the predicted path of massive foreclosures and huge price declines.  We don't have disastrous job losses that are affecting a majority of the local residents.  There are some things that are similar but overall this is a different market. 

  If you are going to plan a strategy for buying or selling a home in this market you are going to have to deal with the market as it is, rather then the way you hope it will turn.  This doesn't mean we won't see more foreclosures in the future or home owners who are facing financial problems.  The market is in flux and the credit markets are still not out of the woods.  The best plan of action is to stay on top of what is actually happening in your local market.  If you want to survive this market and maybe make a little profit you need to know this market not the one 10 years ago. 

Manhattan Beach: Market Snapshot June 20, 2008  

 Manhattan Beach: Price Range June 20, 2008

Call or e-mail if you have questions.....

Manhattan Beach Hill Section ...

Open House: Saturday June 21, 2008 1-4 pm

511 N. Dianthus Manhattan Beach CA 90266

$1,429,000

The perfect entry level home in the Hill Section of Manhattan Beach. Features include large living room with city views, fireplace and big deck. The home is 1900 square feet with three bedrooms, 2 baths, dining and family areas. The back yard is lovely with Koi pond and waterfall. If you would like a private appointment please call or e-mail me.