This is a list of all the posts by month of home, townhome and condos sales in the South Bay- Beach Cities of Manhattan Beach, Hernosa Beach, Redondo Beach and El Segundo for 2008.
This is a list of all the posts by month of home, townhome and condos sales in the South Bay- Beach Cities of Manhattan Beach, Hernosa Beach, Redondo Beach and El Segundo for 2007.
Home sales in South Bay-Beach Cities for October 2007, 2008, 2009
If you are a bit confused about what's happening in the South Bay-Beach Cities' real estate market ... join the club. On the one hand it seems that foreclosure filings in October 2009 in California are up 22% from September 2009 and are running 20% higher then in October 2008. On the other hand our South Bay-Beach Cities real estate market has still not seen a huge number of REO properties. The number of short sales seems to be on the rise but still not nearly as high as in other markets. There was a good article in the Daily Breeze yesterday about the role of government intervention in the housing market. It underlies a lot of the issues that affect our local real estate market.
The housing inventory in the South Bay-Beach Cities is significantly lower then we have seen in a long time. Pending home sales are up in all the Beach Cities and the closed sales volume continues to hold up better then expected. But don't be mislead.... this is still a tough market and the end isn't yet in sight.
Well priced entry level homes in all the Beach Cities are selling in days often with multiple offers. A moderately priced REO in east Manhattan just sold with an all cash offer, after less then 3 days on the market, at a price well over the listed price. Meanwhile homes that are priced above market continue to sit with little or no interest until they are either taken off the market or the price is reduced enough to generate renewed interest. This seems to be true across the board in all price ranges and in all cities.
Many of the homes that enter escrow wind up back on the market because of appraisal problems. Others don't close because of issues that crop up at the last minute during the final underwriting of the loan. This is especially true if you are obtaining a jumbo loan. The same lender who told you 30 days ago that you had amazing FICO scores and plenty of money will now look at you as if you are skimming for fun and profit with Bernie Madoff. Sometimes it seems that no matter what banks say in their ads they really don't want to make loans.... Do they really need you to find a copy of your first paycheck stub from 1979 in 24 hours as the final condition for obtaining a loan?
There is good news and bad news for South Bay-Beach Cities home buyers.....
Looks as if the Home Buyer Tax Credit extension is almost official as the House, on a vote of 403 to 12, passed the extension of the home buyer tax credit. The only thing it needs to be law is President Obama's signature. The new version of the tax credit has been expanded and extended.
The tax credit bill will be extended through April 30, 2010, with a 60-day extension if a contract is in place prior to the deadline. so technically you have to be in escrow no later then April 30, 2010 to take advantage of the credit. First-time home buyers are eligible for a tax credit of up to $8,000. An addition to the law allows existing homeowners who purchase a new primary residence ( not a second or vacation home)will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.
The good news for our South Bay-Beach Cities real estate market is that income requirements have been expanded to $150,000 for single buyers and $225,000 for joint filers. The bad news is that the qualifying purchase price of the home is capped at $800,000.
Additional provisions in the bill allow taxpayers to claim the credit on purchases completed in 2010 on their 2009 income tax returns. In order to keep investors from using the credit the legislation states that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase. However if they sell in less then 36 months the credit must be repaid to the government. This requirement is waived for active duty military personnel who move due to a military order.
Manhattan Beach and Hermosa Beach will probably not see a lot of buyers use the provision because of the cap on the price of a home. However other South Bay Cities may well see an increase in sales from folks who have been undecided about whether to purchase a home now or wait until later next year.
I don't know if the new version of the law is retroactive for people who didn't qualify under the old income requirements but would qualify under the amended law. It might be a good idea if you purchased a home under $800,000 in the last 4 months and meet the new income requirements to check with you tax adviser.
So what's happening in our local Manhattan Beach real estate market... Inventory remains lower then we have seen since 2007 as some homes are taken off the market and others are selling. The sales volume continues to be fairly stable. Prices remain down even as the median appears to be moving higher which is due to more higher priced homes finally finding buyers. Most Sellers who continue to market their homes are ready to make a deal. Buyers are looking for the best deal they can negotiate, but are willing to pay a higher price if they deem the home is a good value.
It's a very different market then we saw at this time last year when sales were minuscule and inventory was climbing higher. Financing remains tougher to obtain and low appraisals continue to haunt buyers and sellers. However escrows are closing... October saw 32 homes and townhomes close escrow in Manhattan Beach.
Agents are scrambling to find properties for clients in the entry levels. I've been getting calls from agents and principals about 511 N Dianthus. The sellers decided to rent the home out last March but are willing to consider selling. Of course anyone who might buy the property would be doing so subject to the existing lease. I know Dianthus isn't the only off market home that is attracting new attention.
Last week Curbed LA pondered that real estate may be on the way to boring. They wondered if our local real estate markets have lost the frenzy we have all come to associate with buying and selling real estate in Southern California.
However if the 24 folks who made offers on 1708 Magnolia in East Manhattan Beach last week are any indication... we have not reached boring. The home was listed for $699,000 and drew big crowds. The accepted offer was about $825,000 for a 3 bedroom+ den, 1 bath home with 1236 sq ft home on a 4870 sq ft lot that needed upgrading. A few days later 1509 Manzanita a 3 bedroom 1 bath 1098 sq ft home also needing updates on a 5247 sq ft lot in Liberty Village saw a quick sale. Originally listed for $749,000 this one appears to have accepted an offer at $799,000.
Of course the real excitement will occur when these homes are appraised. That is the cliff hanger as the loans on both these homes fall under conventional guidelines and therefore will be subject to the appraisal rules under Fannie Mae and Freddie Mac guidelines.
Mid level priced homes also seem to be faring well. In the Trees a newer home at 648 26th Street on an over-sized lot drew over 300 people at the Saturday and Sunday Open Houses. The home was built in 2004 and is on a 5120 sq ft lot. It is listed at $1,799,000. Rumor has it that they have received offers but so far no sale has been reported.
While sellers in the upscale price ranges continue to search for buyers, sellers in the entry to mid level price ranges seem to be having better luck providing they are priced right. Overpricing is still the kiss of death no matter where your property falls on the price scale. I can think of a number of homes that have been on the market forever. They were priced too high and have been rejected by buyers. Now they are "old" inventory and will likely have to really drop their price to attract interest. It's never a good idea to chase the market down at any price level.
An article in the Daily Breeze points out that South Bay median home prices were up overall even as prices were lower then at this time last year. While prices in the South Bay were up 7.4%, the Beach Cities saw prices drop 25.6% from last year. Manhattan Beach was down 12.9%, Hermosa saw declines of 25.8% and Redondo was off 7.2% from September 2008. However even though prices were off from last year by a fairly significant amount, Manhattan Beach had the highest median home price in the California with a median of $1,502,000.
Meanwhile the financial markets are very concerned about what's happening in the commercial real estate sector. For those of us who remember the S & L debacle of the '80's this could be an issue that will have consequences for the residential market. We just saw what happened when credit dried up from 2007-2008 and the effect that had on the residential housing market.
Personally, I think a little boring might be nice....
If you are thinking about buying an REO or tackling a short sale then this video is for you!
The video may be a bit over the top but it does reflect the frustrations of many buyers who are trying to work with banks on short sales and REO's. I have a client who submitted an offer on an REO almost 6 weeks ago. His first offer was over the listed price and was not accepted. He resubmitted a new offer that is higher then his previous offer. In the meantime the price has been lowered but the listing agent says that the bank hasn't made a decision about accepting any offers even though his offer is now 10% above the current asking price. Needless to say he is very frustrated.
At least the listing agent on the above property will communicate with me. In many instances listing agents will not give out any information and only put a fax number on the listing. They will not answer questions or speak with other agents about the status of offers. It is not unusual for a lender to take 60 days before giving a reply on an REO and even longer on a short sale. Often by the time the lender finally responds the initial buyer has found another property and is no longer interested.
Last week a home sold as a short sale in the Tree section of Manhattan Beach at a price that was the same as the price on an offer my clients made over 9 months ago. Had the lender accepted the offer from my clients back in February they would have closed escrow in 40 days and been done by April 2009. Instead they horsed around and ultimately wound up losing an even larger chunk of cash by waiting another 6 months to take the same offer they could have received in the Spring.
And just to make things more interesting on properties with conforming loans backed by Fannie Mae and Freddie Mac some new rules are about to be implemented across the country under the Making Homes Affordable Program. As of September 23, 2009 over 60 lenders have signed on to be part of the program. Basically it means if you can't make the payments or sell your home for more then you owe, you can't just decide to offer your home as a short sale. You must talk with the bank about modifying the loan first and if that doesn't work then the bank will make the decision about offering the home as a short sale to the general public not the owner. We live in interesting times...
Fall has proven to be busier then usual for real estate sales in the Beach Cities. Since October 1, 2009 there have been 142 homes and townhomes listed for sale, 130 homes and townhomes entered escrow and 96 have closed escrow. Of the 96 closed escrows, 8 were in El Segundo, 25 in Manhattan Beach, 12 in Hermosa, 31 in North Redondo and 20 in South Redondo... and there is still another week left in the month.
On another note it seems that Hermosa Beach was the only South Bay-Beach City to make the CNN list of USA towns where residents make over 6 figures. Hermosa was listed with a median income of $137,941 and a median home price of $1,135,000. Guess there won't be many more jokes about poor Hermosa!
According to a number of housing reports the First Time Home Buyer Tax Credit has been a huge boon to the housing market. Estimates vary, but most agree that the credit has been claimed by about one million folks and that of that one million about 350,000 home sales would not have happened if the credit had not been in place.
However it now seems that IRS is wondering just how many of those receiving the credit were entitled and how many were cheating. With that in mind IRS is now reviewing 100,000 of the claims filled by buyers. Seems like someone finally figured out that maybe as there was little need to prove your qualifications a few of these claims might not be on the up and up. What a shock!
The South Bay hasn't had many folks receiving the credit because of home prices and the income restrictions...$75,000 for single folks and $150,000 for married people. However with talk of extending the credit and upping the income levels we could see more potential buyers qualifying.
The Real Estate Bloggers are finding the timing a tad suspicious. Is there a reason the government is sending out IRS just as it comes time to start paying out the credit? Wouldn't it have made more sense to have had tougher criteria in place in the first place rather then now spending a lot of money reviewing tax claims... Questions...questions...questions.
The word around town is that if you did file for the credit you best have all your paperwork together for at least the last three years and it needs to be pristine. If Congress does agree to extend the credit and revamp the income requirements upward then take heed if you plan to file for the credit. It's probably not a good idea to file for the credit along with a creative tax return.
Why setting the right listing price is essential when selling your home...
It is a fact of life that sellers always think they have priced their home too low and buyers always think it is priced too high. In "up markets" sellers can price above where the last comp sold and often get that price or more . However in "down" markets sellers who over price their home often wind up settling for a price that is considerably less then they might have received if they had priced the home at market initially.
As we all know we are in the down cycle of our local real estate market with prices currently hovering around 2004 levels or lower. The Beach Cities have been fairly fortunate compared to the rest of California real estate and have not had huge numbers of foreclosures. However I expect we will see more foreclosures and short sales on higher priced properties in the coming months... not record numbers but probably enough to influence home prices.
So what does this mean if you are thinking about selling your home? Along with all the givens of selling... clear the clutter, paint, spiffy up the landscaping, etc... the # 1 item on your list should be pricing at or slightly below the current market value. This is not the market to test the waters, so to speak, when it comes to pricing.
Buyers are looking for value... and value can mean $600,000 or $6,000,000 depending on the property. I'm seeing a number of homes priced over market that just sit. I know many of these sellers priced their homes on the high side as they expected to negotiate the price to reach their desired price. Unfortunately many buyers who set price limits are not willing to look at homes priced over that limit in the hopes the seller will negotiate.
Buyers don't care that you paid $XXX three years ago. Buyers are only concerned with what the home is worth now. The homes that are selling in today's market are priced to sell and those that aren't selling are priced too high. The only thing that happens when you chase the market down is that you lose more money then if you priced it right in the first place.
Often buyers not only perceive a listing as "old" they also believe there may be something wrong with it. Consequently even when a seller eventually lowers the price, the house carries a taint of something not quite right about it. This leads buyers to often dismiss a property or if they do take a look and make an offer it will be substantially lower then if the price had been on target when it was first listed.
Another major issue is appraisals. Appraisers are now only looking at values on homes that sold within the last 90 days and often the last 60 days. Proximity along with time is a real issue. You see this in East Manhattan on homes selling north of Manhattan Beach Blvd. In the old days appraisers would take any sale within 1-1.5 miles in all of east Manhattan. Now they start with homes closer to the subject property and if there are enough comps they use them even if they are lower rather then move to homes sold south on Manhattan Beach Blvd. The same is true for North Redondo when dealing with properties north and south of Artesia. You can't justify a value on a property south of Artesia by using comps north of Artesia.
There are a number of homes in all price ranges that have been sitting for months at the same price with no offers. As sale numbers continue to decline as we enter the fourth quarter there will be fewer comps available to appraisers and owners who are trying to establish value. Don't expect to get the same amount that your neighbors did 6 months ago... in this market expecting less may ultimately mean receiving more at the end of the transaction.
It’s a done deal, Swedish Hospital has broken ground on their new health care facility in Issaquah Highlands.
This will be an important accomplishment for residents of Issaquah and Sammamish for a comprehensive , fully integrated health care, sort of a outpatient clinic with beds in back, giving them near next door access to world class healthcare.
The benefits are more than medical, however. It will be an economic boon to our area, with more than 1000 direct jobs. The Swedish Hospital will also cause growth in retail and hospitality services. Employees of Swedish can live, work and play in Issaquah Highlands or Issaquah taking advantage all the convenient trails, outdoor recreation, and community spirit we have here.
Mayor of Issaquah, Ava Frisinger and Governor Christine Gregoire along with Swedish dignitaries grabbed their golden shovels and made it official.
The NW MLS Stats show that This home sold in September for $384,950.00
September Issaquah home Sales, closed sales, reports 52 homes sold.
The Median List Price was $517,400. The Median selling price was $495,750.
The Median home details: Bedrooms - 4, Bathrooms - 2.5, Square feet - 2,448, and days on market - 53.
36 Condominium homes sold in Issaquah in September:
The Median List price was $274,525 and the Median sales price was $272,500.
The Median Condo details: Bedrooms - 2, Bathrooms - 2, Square feet - 1238, and days on market - 51.
The least expensive home sold in Issaquah was for $185,00. It was 2 bedroom, 1.5 bath, 1015 square feet and was on the market for 4 days.
The most Expensive home sold was for 1.8 million. It had been listed at 1.999 and was on the market for 253 days.
The least expensive condominium sold last month in Issaquah was for $164,900. This was a 1 bedroom 803 square foot condo. It sold the first day on the market.
The most expensive condominium sold in September was for $434,990. This condo was on the market for 362 days.
There appears to be two schools of thought about living in Manhattan Village... you either love it or you don't... there are not many folks in the middle. The residents who love the Village can't imagine living anywhere else and often move up from 2 bedroom Court homes to to 3 bedroom Patio homes and then make the next step to an Estate home.
Real Estate in Manhattan Village always seems to run in cycles... either very very hot or very very cold. This year has been on the cold side in the Village. Since January 1, 2009, 6 townhomes/court homes and 4 single family homes have closed escrow. There are currently 3 patio/court homes on the market and 3 single family homes.
The biggest issue facing the Village now is appraisals. In a complex as large are Manhattan Village appraisal guidelines mean that most appraiser will only comp within the complex if there are comps available. This isn't too bad if you have a patio or court home for sale but can be a real issue for those selling an Estate home. Overall the Village hasn't had a lot of REO's when you consider there are over 400 units in the Village.
Townhomes( Patio/Court homes): Inventory has been running between 5-6 units for sale monthly. However inventory recently dropped as a few units dropped off the market and one entered escrow. There have been a number of units that have left the market...a few of which will no doubt show up again in the near future. There is one townhome that is an REO that is not on the market, one REO that is pending and one that closed escrow in July. There is another that is in the early stage of preforeclosure and I know of a few more that might soon be trying for a short sale.
Estate Homes: A number of owners are beginning to do some major remodeling to both the interior and exterior of their homes. Currently there are 3 homes for sale which is higher then usual for the estate homes. The homes on the market are some of the larger floorplans. So far there have not been any REO's or short sales among the estate homes.
Manhattan Beach Homes: September 2009 Days on Market
Inventory continues to be lower then we have seen in a long time. The last time inventory was at these levels was in the fall of 2007 when there were 122 homes listed for sale. Of course back then the price mix was very different. In September 2007 there were 3 homes priced under $1M... today there are 18. In the $1M-$2M range there were 53... today there are 43. In the $2M-$3M range there were 49 homes for sale... today there are 29. In the $3M-$4M range there were 10 homes for sale...today there are 12. In the $4M+ range there were 7 homes...today there are 19.
Sales in the Fall of 2007 were low as lenders found themselves in deep trouble over sub prime loans. Major lenders began pulling back on jumbo loans in August 2007 . Interest rates on jumbo loans jumped overnight to 8.5% or higher depending on the lender. Today while jumbo loans are more difficult to obtain because of tougher loan standards, interest rates are very good... under 6% for a fixed rate from most lenders with 20% down.
We've seen a lot of changes in the Manhattan Beach real estate market since 2007. Along with credit being tougher to obtain, we have seen prices decline. While Manhattan Beach has not had a high number of homes making it to REO status; we are seeing more homes receiving default notices and an increase in short sales. Sales volume is down from the Summer highs and prices are bouncing around in each of the city's sub markets. I expect to see volume continue to decline and prices to fluctuate. The median listing price for single family homes in Manhattan Beach is $2,249,000, the median sold price as of 9/25/ 2009 is $1,850,000 while the median pending sale price is $1,324,500. As of 9/25/2009 there were only 12 homes and 7 townhomes that had closed escrow.
Manhattan Beach: Market Snapshot September 25, 2009
Last week those in the know seemed to be saying that the recession was over. The LA Times cheered that Southern California's Vital Signs are Improving and the Southern California housing market was about to hit bottom. But toward the end of the week the news was not quite as good with state unemployment numbers reaching above 12% and a few economists hedging their bets. Irwin Kellner from Money Watch theorizes that maybe it ain't over til it's over and I think I agree with him. Much as I would love to see our Beach Cities real estate market stabilize I'm having a hard time believing that the real estate market in California has reached the bottom with such a high unemployment rate and the state in so much financial turmoil. Employment and financing are going to be major issues that must be resolved before we begin to see a return of a normal market
This real estate market is different then previous markets and consequently may be harder to call. I suspect that we will see the home market bottom by city and sub areas within each city. As an example I think that we may have seen the bottom in February of this year for the lowest priced single family homes in Manhattan Beach ( $750,000 or less), Hermosa Beach ( $700,000 or less) N. Redondo ( $600,000 or less), S. Redondo( $700,000 or less) and El Segundo ( $650,000 or less). We may also be nearing the bottom for entry level townhomes/condos in the Beach Cities. I think we will see properties priced in Manhattan and Hermosa from $800,000-$1M reach their lowest level by the end of the year. The rest of the markets will level at different times over the coming year. I also think that reaching the end of the market will not signal an uptick in prices. Most price points will remain flat with the exception of Strand and walk street properties near the Strand which seem to have a life of their own even in a down market.
While it may be true that the South Bay employment market is doing better then other parts of the state we are not out of the woods yet. I know a number of folks who may have jobs but have lost of lot of perks. Many companies will not be paying an end of the year bonus to employees that was a standard benefit. Others are changing more for health care benefits. If you are on a salary plus commission your commission percentage may be significantly lower. If you own a company you may be paying yourself less if the company income has decreased. In other words a lot of folks just simply are not making the same amount of money they were a few years ago.
Consumer spending continues to be below expected levels in all categories. Home buyers are still expecting prices will continue to decline a bit more and continue to make offers the listed price. These are not necessarily buyers who think the market will drop another 25% but rather those who think there is a little more to be discounted... maybe another 5%-10% before we see the bottom of the market. That's not to say there are not some homes that are receiving multiple offers with prices above the listed price but these usually were often priced below market value. Having multiple offers doesn't always mean the offers are over the listed price. It isn't unusual to have multiple low offers if buyers feel the price is on the high side.
One of the big issues affecting the housing market is that banks are still very leery when it comes to extending credit to buyers on a purchase loan or homeowners looking to refinance. If you are not a straight salary W2 employee banks are not going to be your friend. In our market many of the people making the most money are commission based and banks don't like 1099 folks very much.
We have been so consumed with foreclosures that a major problem in our market is often overlooked... owners who want or need to refinance and can't qualify. If you are self employed you might find that with all the new rules and regulations many of the assets you took for granted no longer count as much when a lender reviews a loan package. Prior to September 1, 2009 if you had a lot of assets in stock, bonds and other accounts lenders gave you 100% of the value of those funds. Since September 1, 2009 lenders will only allow you 70% of the value of the assets toward qualification which means you just lost 30% of your financial power.
I spoke with a few lenders last week and the general consensus of opinion is that there are going to be more problems with upper end housing well into next year. With values having declined by 25% +/- in most of the Beach Cities owners may find it difficult to refinance. Another issue is that if your income has changed or if you are commission based you might not qualify for a new loan even if the payment is lower on the same amount of money because of rule changes. Most of these people will not wind up in foreclosure but they may have to sell at a discounted price if they can't refinance.
While it is true that inventory has decreased and sales picked up over the summer, the fact is that the decrease was not all due to properties selling. A number of sellers just decided to wait the market out while others opted to rent their homes for a year or two. As we come to the end of the year sales volume is again declining compared to previous months. I expect that the 4th quarter will be better then last year as the financial markets are not in as much turmoil. However until lenders losen credit a bit more and consumers decide to start spending I don't think we have seen the end of the recession or the bottom of the real estatre market.
School has started and that means that the end of the Summer real estate season has hit the Beach Cities. As is typical of this time of year, home sales volume will continue to slow. Interest rates should remain fairly low well into next year. However regulations will continue to be strict for most borrowers. Conforming and jumbo conforming loans have seen a number of new regulations and changes in rules this year.
The first time buyer's tax credit is scheduled to end in a few weeks. There is a lot of talk about not only extending the credit but increasing it to $15,000 and making it available to all buyers regardless of income or home price. The higher conforming jumbo loan ($729,750 or less) is once again scheduled to expire at the end of the year as it did last year unless Congress extends it. This created a lot of issues in our market last year as the upper limit was not available from November 2008 until almost the end of April 2009. If the same thing happens again this year you will once again see big declines in sales volume for entry level homes.
Rumors abound about thousands of new foreclosures hitting the market in October but so far they remain just that rumors. Compared to other parts of the state there have been very few bank owned properties(REO's) hitting the market in the Beach Cities. As prices continue to decline and unemployment remains a problem, I expect we will see an increase in bot REO's and properties being offered as short sales. However many of those will not go through as banks will not accept a short sale unless the owner can prove a hardship other then a decline in value.
As expected sales volume for August was below levels for June and July in all the Beach Cities. Inventory is down in Manhattan Beach but has increased in Hermosa Beach, Redondo Beach and El Segundo. Pending sales are holding relatively steady in all the Beach Cities compared to last month.
Come to the Manhattan Beach Hometown Fair Saturday and Sunday October 3-4, 2009
While there are a lot of things to love about living in Manhattan Beach.. one of the best is the Hometown Fair. The 10K race is an event for the whole community... whether you are a marathon athlete or an I can do thiscuz I want a tee shirt competitor this is an event cheered by the whole community. Folks line up along the route with coffee in hand to cheer on family, friends and neighbors who are competing in the race. This year I will be helping with the 10K race. Volunteering for the fair is great fun!
After the race take a leisurely stroll through the booths filled with handcrafted items made by a number of our local residents. Then it's off to the food and games areas for the whole family. These booths are staffed by non-profit community groups who raise money for their organizations.
One of the oldest of the philanthropic groups in Manhattan Beach is the Neptunian Woman's Club of Manhattan Beach. The Neptunian Woman's Club was started in 1909 before Manhattan Beach was officially Manhattan Beach. This year we are celebrating our 100th Birthday! Each year the club raises money for scholarships for Manhattan Beach students and other local charities with a number of events.
Last year we had a Pineapple booth and also worked at the Beer Garden. We had a great time! It was so nice to see so many of the parents and students who received scholarships stop by and say hello. This year we are sponsoring two booths and will be selling cold soda and sliders. We will also be selling raffle tickets for a new Prius. Proceeds from the raffle will go toward updating our Library. We hope you will stop by and join us again this year as we continue our goal of providing scholarships for Manhattan Beach students and local groups who need a helping hand along with some cash.
***If you would like to volunteer I know there are still projects that need help. For more information, please send an email to freespeechandvolunteers@mbfair.org, or call and leave a message at 310-546-5219.
Have you ever wondered what happened to the inside of some of the smaller homes that have sold in the last few years and were not torn down... well here's your chance to find out.
A little over a year ago I sold a little tree section fixer at 3612 Poinsettia, Manhattan Beach. In prior years this house would have been torn down the day escrow closed as it was only two bedrooms, less then 900 square feet with a single car garage and needed work. In fact it had been sold to a builder who backed out just before closing as he had a lot of inventory that hadn't sold.
3612 Poinsettia was a probate sale. I listed Poinsettia around Thanksgiving in 2007 with a starting price of $929,000 which was actually lower then the value given by the appraiser for the state of California. After a few adjustments the price was reduced to $849,000 in March of 2008. Along the way there were many comments about the price and condition. In May 2008 this little home found its place in the market and after receiving multiple offers (7 of them) entered escrow and closed in mid July 2008 at $849,000 with a small credit to the buyer.
Since escrow closed I have driven by and noticed a number of changes. Last weekend I was able to see what the new owners had done to the inside as well as the outside... what a difference a year makes. This was always a sweet house... but now it is charming. They did a number of things I would have done and others I didn't consider. French doors were added to both bedrooms which really opened up those rooms. The new kitchen is stunning and the living room is warm and inviting.
I thought it would be fun for those of you who followed the story of this listing to see the before and after views of this lovely home. If you are considering buying a small "fixer" you will find some great ideas. The exterior was repainted and flower boxes added. They tore out the old kitchen cabinets, etc and redid everything while staying within the same footprint. They made few structural changes other then widening the doorway into the kitchen and closing off the back door by the garage. They scraped the ceilings and revamped the fireplace. Most of the flooring is the original, sanded and stained a darker color. The kitchen flooring was added and is a perfect match to the existing floor. They tore out the old tub and vanity in the bath and put in a double sink and a claw footed tub/shower. French doors were added to both bedrooms. New moldings around the doors and new doors for the closets finished off the project. The backyard and patio area are their next project.
3612 Poinsettia, Manhattan Beach: Before and After....
Before....
After......
All it takes is a little imagination.....and a bit of help from some friends to make a fixer into something special. In the last two years a number of homes that would have been lost to the bulldozer a few years ago are being bought and updated. I think this is great. Many of these older and smaller homes have good bones but need a little fixin' to show off their charm. For awhile there it seemed as if we were becoming a Stepford community of McMansions. It's nice to see a mix of homes around town... this is what adds character and charm to our City by the Sea. .
The new owners are willing to share information about the folks who helped them transform the house. Email me off line if you would like the information.
As the Spring/Summer selling season winds down the volume of home sales in Manhattan Beach for August looks as if it will be lower then either June or July. The Days on Market(DOM) continues moving upward as sellers scramble to find a price that buyers find reasonable and sellers can live with.
This is the time of year when smart sellers should be reviewing their current asking price and making adjustments if the home has been on the market over 90 days without an accepted offer. If you are thinking about listing your home for sale this is not the time to test the market if you need to sell before the end of the year. The homes that are selling are the ones that are priced at or slightly below current market value... not the ones trying to hang on to a 2007 price. It is tough for folks who bought in 2005, 2006 or 2007 to accept the idea that their home is worth less then they paid. If you do not have to sell then take your home off the market or rent it out for a while. Trust me on this one... listing your home well above the market price is not in your best interest.
Inventory is lower but the disparity between listed price and sold price is still about 22% for homes in Manhattan Beach. It is also of note that of the 20 homes that have closed escrow so far this month 16 sold for less then two million dollars.
