Inventory at a Low Point in Manhattan
As we come into the Fall here in Manhattan Beach, the mentality among the public is that the market is starting to slow down as inventory is not coming on the market as frequently as it does in the beginning of the spring. This theory does hold some weight but there is an underlying factor that might not be popping out to potential Buyers and Sellers. As of today, there are a total of 129 properties that are active and 45 in pending or in backup position in all of Manhattan Beach. That is roughly a 2.8 month of inventory. Not a high number, right? A big reason for this is because properties that have come out and have been on the market for over 3 weeks become stale in the eye of the public. Many factors can contribute to this including price, location, floor plan, not enough bedrooms, telephone poles distracting from the view, etc. If buyers don’t see past these issues, the only realistic way for a Seller to make up for that is by lowering the price. This brings me to my next point.
Within the last two weeks, going back to September 25th, there have been 7 properties that have gone into back up or pending position, and 5 out of those 7 had been listed for under 3 weeks. Two reasons for the quick sale: 1. PRICE!! Buyer(s) see the value in the property at a competitive price and have made a strong offer. 2. QUALITY!! Buyer(s) see the correlation between the price and the value of the property. Bottom line, quality properties, priced at market or just below, are seeing a lot of action with multiple offers within the first few weeks. Take 1312 Pine Ave. for example. This 4 bedroom, 4 bath, 2800 sq. ft. corner listing in the Tree Section was offered at $1.445. Just 6 days later, there were multiple offers and it went into escrow over list price. A perfect example of a property having the right combination of competitive pricing and a quality property.