|Granted that much of the country would consider any sale in Manhattan Beach CA a luxury sale with median home prices over $1,000,000 but a good local indicator of the luxury home marketis reflected in sales over $2,000,000. While the inventory of luxury homes over the past few years has dropped considerably the number of pending sales and sold homes has not changed much. In February of 2008 there were 73 active listings priced over $2,000,000 with 31 new listings, 4 home sales and 10 homes in escrow. Contrast that with our current numbers of 38 active listings, 7 new listings, 3 closed sales and 9 pending home sales. What this explains is why we haven't seen a wholesale drop in prices in the area. The demand has remained relatively stable while inventory has dropped by almost 50%. Without question some homes are no longer priced above $2,000,000 and selling for less but this only accounts for a limited number of the homes. In fact the average list price in Manhattan Beach has gone from $1.8M in 2008 to 2.4M currently. This is impacted by the very high number of oceanfront Strand homes for sale but overall the numbers indicate a very stable market.
Above is a chart reflecting the number of homes priced over $2,000,000 with the light green bar indicating active listings, the dark green homes that have sold, and the red line indicating properties going into escrow. While it's clear inventory is down both pending and sold home numbers have not changed much.
Below is a chart of median home prices over the same 3 year time frame showing a very minimal price decrease for all homes in Manhattan Beach. Click here to view the current list of luxury homes for sale in Manhattan Beach CA.
Keith Kyle is a licensed Realtor, short sale specialist and Top Producing agent with South Bay Brokers in Manhattan Beach. He serves his clients throughout the South Bay and his websites KeithKyleHomes.com, ManhattanBeachLuxuryRealEstate.com and FindYourSouthBayHome.com offer the most comprehensive real estate destinations in the South Bay with free MLS access, current home listings, open houses, recent home sales information and more. Keith can be reached at 310-251-2344 or by email at info@KeithKyleHomes.com. For more information on the South Bay, visit my Beach Cities Real Estate blog.