For the first time ever, the median price for homes in Manhattan Beach, California, has hit $3,000,000.
It was not so long ago that the median price was in the lower $2M range. Indeed, the median price was largely stable for three years, between 2017-2019, varying slightly from $2.325M-$2.389M.
Now, in 12 months, the median price is up 15%; it had been at $2.600M at the end of November 2020.
The median is up 20% over 18 months, dating back to the May 2020 "reopening" of the local real estate market after the early pandemic shutdowns.
Manhattan Beach, CA, is experiencing a market-wide surge in prices and sales volume ever since that "reopening." Why?
For one thing, buyers in the area trend to the wealthier end of the spectrum. During the pandemic, economic conditions have largely remained favorable for this class of consumer.
Low interest rates are helping to drive up prices everywhere, with Manhattan Beach no exception. Higher prices are more affordable with these lower rates.
Inventory of homes for sale in Manhattan Beach has remained very limited throughout 2021, often half or less than normal levels. At the end of November this year, inventory stood at just 35 listings, far below the 93 listing average of the prior three years.
Finally, Manhattan Beach has benefited from pandemic-era buyers' thirst for second homes in "vacation" type destinations. The seaside city is safe, has a thriving, quaint downtown, lots of quality restaurants, good weather and, of course, the beach. Given the choice to work remotely from their main homes or from a second home, many workers are choosing to spend time in Manhattan Beach houses, with a greater overall quality of life.
The town is my home and the focus of our business at Edge Real Estate Agency. We've discussed many trends in the local market over the years on our Manhattan Beach Confidential blog.
If you're interested, we reported deep details on median prices and other recent market activity in this new blog post.
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