August 2012

If you’re considering purchasing or selling Manhattan Beach houses or real estate you may have wondered how we come up with a suggestion on current market value. It’s always based on the sales prices of comparable homes. Think of current list prices as a bit of a fantasyland for the seller. It merely represents what sellers hope to get for the home, not what homes are truly worth. 

To illustrate this point, let’s look at a Manhattan Beach home that was listed in March of 2012. The average listing price at that time was $2,606,000, while the average sales price was $1,723,000. Since area homes tend to remain on the market an average of 97 days, the home most likely sold in early July. The average sales price at that time was almost a million dollars

All it takes is one property to get the price-hike ball rolling. Look back to late 2011 and you’ll see what I mean. In December, 3002 Hermosa Avenue (interior picture on the right and below) sold at $931 a square foot, or $3,350.00. Then, the snowball effect began, picking up steam as it rolled along. Not only did 3002 Hermosa justify the new, higher prices, but buyers were feeling more comfortable and even started showing some aggression in offering prices.

If you aren’t familiar with our area, Hermosa Avenue is one of the busier streets, used by locals to traverse the area from North Hermosa to South Hermosa. Hermosa Avenue is also one street east of The Strand. Homes here tend to have better views, because of the 26-foot height restriction, which

The real estate market in Manhattan Beach never ceases to amaze me – especially lately. The inventory is tight and it doesn’t appear that it will loosen up anytime in the near future. With all the prime properties either sold or in escrow, investors and traditional buyers are forced to look for homes on streets they previously wouldn’t have considered.

This past Saturday, four homes on the same street (two townhouse buildings) went into a pending status after being on the market for almost a year – 330 days to be exact. All four have the same floor plan and all have 1,850 square feet of living space. Let’s take a look at each home’s particulars and then try to figure out what happened. 

224 Marine Ave & 225 Marine Place

These townhouses offer

The real estate market in Manhattan Beach's Tree Section has been on fire with little-to-no inventory and high buyer interest for most of the year. Since the beginning of the year, buyers saw this as an opportunity with low interest rates and prices down to snatch up a property.  The 500 location is a very desireable spot with close access to a few parks, the sand dunes, and still walkable to the beach.

583 31st Street Manhattan Beach: Listed on August 9th, 583 31st St. is already under contract and has a backup offer in place. Offered at $1,299,000, the home sits up high so it has views of the hills and Sand Dune Park. Grandview Elementary is a walkable distance.

The home has hardwood in the dining and living rooms and a nice sized family room with

Life on any of the South Bay’s amazing beaches is a dream-come-true for many and a dream being pursued for many others. Hermosa Beach is a small city full of down-to-earth residents that can typically be found at the beach, at the pier, at one of our charming watering holes or grabbing a bite at one of the city’s great eateries. 

In other words, Hermosa Beach locals take advantage of all that this 1.4 square mile slice of Southern California has to offer. If you aren’t familiar with Hermosa Beach I hope you’ll allow me to introduce you to it and help you become acclimated.

Hermosa Beach Quick Facts

• There are 19,506 residents in Hermosa Beach, according to the 2010 Census. This number reflects an over five percent increase from a decade ago.

After a very long 2 year fiasco, we are finally closing the books on 2811 N. Valley in the Tree Section of Manhattan Beach.  The Chase owned foreclosure is finally closed and recorded for $850,000,  which makes this under $400 a square feet.  

But don't be fooled.  This one was on a skinny 25X100 lot on the busy Valley Drive.  The property appraised for $950,000 so it looks like our client got a GREAT DEAL.

This one had 2240 square feet with an additional 450 square feet of "boot leg" enclosed deck on the second story.  The picture we are showing was taken prior to the patio enclosure back in 2010.

For more information on details on this sale or any other Manhattan Beach Tree Section Homes, please call Matt Pernice at (310) 808-3247.

Manhattan Beach high-income homeowners who are considering selling their homes should probably consider doing so before the end of the year. There’s a new 3.8 percent tax going into effect on January 1, 2013, imposed on certain investment income.

How much you’ll owe from the proceeds of the sale of your home depends on your income and how much profit you make off the sale. This new tax, an Obama administration strategy to raise money for the Patient Protection and Affordable Care Act, applies to single filers with adjusted gross incomes (AGI) above $200,000 and married couples, filing jointly with an AGI over $250,000. 

There are many misconceptions about the new tax and one of them is that it eliminates the capital gains exclusions for homeowners

While Manhattan Beach is a small city, we have a great big real estate market. Not “big” in the number of homes available, but huge in the amount of money that changes hands during the typical transaction. For instance, in the second week of July this year the median sales price of residential real estate in Manhattan Beach was $1,716,250.

It’s a pity the inventory of available homes isn’t as impressive. During the month of June inventories in the South Bay in general were down 40 percent over last year at this time. We currently have a two-month supply of homes, meaning that if no new homes were to come on the market, the current supply would be gone in two months. A “normal,” or balanced real estate market typically has a three month supply of

An interesting fact about “beach property in California” is that while beaches dot the entire California coast, from north to south, the perception of beach property in California is of those in the southern part of the state.

Northern California homes, if located on the beach, are generally described as “ocean-front.” I’m not sure, but I think it has something to do with the differences in climate and lifestyle between the two areas. Southern California’s weather is more conducive to spending time on the beach, thus the beach is a central theme in the lives of those that live on it.

Southern California seems to afford a more casual lifestyle as well, especially near our beaches. This laid-back meme, for the most part, isn’t common in Northern

Pocket Listings in Manhattan Beach: The "secret" inventory that floats around in the broker community.  Unless you are working with a Manhattan Beach realtor directly you will typically not have access to this list.  Here is the list of Manhattan Beach pocket listings updated every week on Friday.  In order for us disclose the full address, you must contact Matt or call us direct at (310) 808-3247.

Manhattan Beach Tree Section: $1,800,000 
Manhattan Beach Walk Street: $4,400,000
Manhattan Beach Walk Street: $4,500,000 A+ Location
East Manhattan Beach: $2,050,000 50X150 Lot , Great location, 4500 Sqaure Feet, 6 bedrooms, 5.5 bathrooms

Manhattan Beach Pocket Listing Contact Form