At this moment, there are 8 active Tree Section listings in Manhattan Beach priced between $2,300,000 and $2,800,000. This price range represents the middle of the market for the area as it is above the entry-level range and below most new construction prices. The Average Days on Market of these active listings is 59 days. The average asking price is $2,563,250. This data seems in line with the closed comparable sales in the last 6 months for the same price range: 65 Average Days on Market with an average sold price of $2,597,058.
The interesting thing here is that nothing in this price range has gone under contract in this area since June 6 even though the homes seem to be “well-priced” based on the comparable sales. There seems to be a bit of a “pause” in this market segment.
Why? Here are a couple of contributing factors:
- The last several months have seen an abundance of new construction homes in this area leading to higher expectations for buyers who now look for more updated décor and finishes.
- The increased inventory in the Tree Section has led to a lack of urgency with buyers who expect to see more homes coming to the market more regularly. In comparison, the last few years has seen less inventory resulting in fierce competition for desirable homes. According to TrendGraphix, August 2017, 8 months of inventory was available in this price range signaling a “Buyer’s Market.”
Note that October 2016 also showed a spike in inventory available with 11 months at that time. The inventory available then subsided before heading back up to 7 months in Feb 2017 and dipping again until May 2017 at 6 months available. June 2017 saw a dip to 1 month before climbing in July and August.
What does this mean to you? If you are considering a purchase in the Tree Section in the next few months, you may think about moving your timing up and taking action now to get a good deal on one of these available homes.
If you are a seller in the Tree Section, pricing your home will be very important in order to successfully compete in this area. And, setting your home apart from these currently listed properties will help tremendously.
Will this post summer season result in great deals for buyers? If these are serious sellers, the answer will be yes.
Contact Team Plunkett to help you capitalize on this opportunity!