Some Westside/South Bay Neighborhoods Take Some Big Hits Since 2008…But Read The Fine Print
According to Dataquick (which tracks all sales in specific areas), we have seen solid price erosion based on price per square foot numbers over the last 2 years thru March 2008. Many people feel these numbers have signaled a bottom in the market prompting buyers to come off the sidelines. Despite tough lending standards, prices have begun to stabilize and even rise lately with buyers less fearful and inventory being limited.
Please be careful when looking at these numbers since the Westside and Manhattan Beach operate on a micro market level. The price drop for homes in good condition with a great floor plan is less than a home that needs to be remodeled. Furthermore, land is KING in coastal communities. Buyers pay a premium for a larger lot and it is a good investment as the average lot size in California continues to shrink (was over 7,500 feet in the early 1980’s and is now down to about 5,400 feet) along with stricter building codes limiting how big a home can be based on lot square footage. Keep these things in mind when valuing a home and why a discrepancy in price can happen between homes within a few blocks of each other.
That said, the overall numbers speak for themselves and it will be interesting to see where the market goes from here.
Beverly Hills 90210 (2008) $851 (2010) $516 (-39.4%) 17 sales
Manhattan Beach 90266 (2008) $826 (2010) $602 (-28.1%) 26 sales
Santa Monica 90402 (2008) $962 (2010) $724 (-24.8%) 10 sales
Brentwood 90049 (2008) $818 (2010) $632 (-22.8%) 17 sales
By John SkinnerLatest Westside/Manhattan Beach Real-Time Market Data
*Click image to enlarge
Note: We have been posting this information weekly, so feel free to take a look at prior real-time market data entries to compare.
Major Traffic Advisory for Sunset Blvd and Church Lane!
Beginning this evening and through the entire weekend, the Sunset Boulevard Overpass between Sepulveda and Church will be closed. This is part of the I-405 Sepulveda Pass Widening Project. You can expect major delays on Sunset over the next several weeks/months, but this weekend should be especially challenging as they begin the demolition of the bridge. Here are two links to provide you more information:
http://www.metro.net/projects/I-405/sunset-bridge-demolition-reconstruction/
**Thanks to Tom Dunlap our Prudential Regional General Manager for the info!
Extremely Important: Los Angeles Wants To Limit The Size of Hillside Houses…
Please visit the link below for more information on an ordinance that could severely impact the value of homes in areas like the Pacific Palisades, Bel-Air, Brentwood and Sherman Oaks. After putting in a manzionization law in the flats of Los Angeles (you can’t build a home larger than 1/2 the size of your lot), this is the next step and in response to some hillside homes that were massively over-built.
In my opinion, this ordinance is unfair. They are proposing that home size regulations be 60% less than what they currently are. I think a more rational approach to this is having ordinances put in on a community/tract basis.
You should forward this to any friends or colleagues that own in the potentially affected areas. The goal of the regulators is to get something passed by early July. Activists’ believe that will probably get delayed but some type of regulation will happen by August. . .
April Sales Data + Detailed Analysis for Westside/Manhattan Beach
April continued the show signs of a strengthening market in the Single Family Home market but we are still pretty far off the numbers in 2007 and 2005. Total April sales for the cities included in this graph was 195 compared to last year’s dreadful 123.
However, it still lags well behind the sales activity of 276 in April 07 and 277 in April 05 even though realtors feel even busier than they were during those times.
Part of the reason we are so busy is deals are typically more complex and good/ethical agents are getting more business since the trust factor is extremely important in this type of market.
With increased inventory and an improving economy these numbers should continue to improve despite federal tax credits expiring. The Westside/Manhattan Beach price point is high enough that the credit should not have much of an impact on the numbers.
The gap between list price and sales price is beginning to shrink quite a bit compared to last year. Sales in April averaged about 97% of the list price on the Westside for homes under 2.5 million. The gap was around 93% last year at this time. The luxury home market above 5 million is still struggling with realistic listing prices and the gap between list and sales price is under 90%.
Highlights regarding the sales:
*Santa Monica had 23 sales this month compared to 15 last month. Of the 23 sales, 4 of them went for well over asking and the majority of them sold at or just under the listing price. 512 Georgina, a 4,700 sq. ft. home on a 12K lot that needed lots of work sold for $4 million, over 25% of the list price of $3.1 million. The property commanded 8 offers with five of them being 100% cash.
*Brentwood was close to asking or over asking on most single family sales.
*Big Boy Sales: 31122 Broad Beach in Malibu Beach sold for $11.75M. Asking price was $13.8M. 2591 Summitridge Drive in Bel-Air sold for $9.175M with an asking price of $10.9M. 1025 Ridgedale in Beverly Hills sold for $13M with an asking price of $15M.
*Two properties in Bel-Air went for over asking and were listed for less than a month.
*Culver City has 7 properties that sold for over asking…Westchester checks in with 5 and Manhattan Beach with 4…
If you would like information about a specific property, please send our office an e-mail.
New and Pended Listing Activity for Westside/Manhattan Beach + Analysis
New listing activity for single family homes continued its upward trend over the past few months. The leaders were Westchester increasing from 18 listings in March to 38 in April; Cheviot Hills went from 9 to 17 and Venice went from 25 to 39. The few notable exceptions were Santa Monica with only 32 new listings in April compared to 48 in March while Manhattan Beach dropped from 49 to 38.
The increase in new listings along with seller’s competitively pricing properties is leading to pending sales continuing to increase as well. Despite having fewer new listings in April, Santa Monica went from having 5 pended sales in March to 12 in April.
Westchester had 6 properties go into escrow within 7 days of coming on the market and they were all multiple offer situations. Manhattan Beach had 5 properties and the Palisades had 3 properties go into escrow within 7 days of hitting the market.
Malibu Beach continues to struggle with sales volume and long escrow periods. The home to many celebrity enclaves only has 1 pended sale in March and April. Obviously the number could be higher with off-market deals that frequently happen in the area but even with that activity they are still probably functioning at below 50%of activity in 2005.
If you would like information about a specific property, please send our office an e-mail or give us a call at 310-255-3447.
Latest Westside/Manhattan Beach Real-Time Market Data
*Click image to enlarge
Note: We have been posting this information weekly, so feel free to take a look at prior real-time market data entries to compare.
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