Winter.. Manhattan Beach
Time seems to pass quickly as we near the end of another year.. Fall is a busy time of year. The Hometown Fair the first week in October, then Halloween, Thanksgiving, Christmas and welcoming in the New Year. Everyone is always busy and yet there is still a lot of activity in our local Manhattan Beach real estate market. People are making decisions buying and selling property on a daily basis. It might not be as active as in the Spring, but there is a lot happening!
Articles in both the Daily Breeze and the L.A. Times point out that while the number of sales is lower than in previous months; home prices are continuing to move upward. The overall residential ( homes, townhomes,condos) median sold price in Manhattan Beach in October was $2,250,000. In November the median sold price dropped slightly to $1,900,000. You can expect to see prices bounce around a bit from now through the first of the year. However the single family home median price was $2,250,000 in October and November. In small markets like the Beach Cities the mix of properties on the market often has a huge affect on the median price.
You can add another factor to the housing mix. Interest rates are moving upward. The FED has been pretty vocal about a rate increase in December. While the rate increases do not directly affect mortgage rates they do affect bond prices which in turn can affect interest rates. Currently rates have increased about 1/2-3/4 of a point depending on the type of loan you are considering. In the broad picture that may not seem like much but it can make a difference to the amount of money a buyer can obtain.
As an example if you qualify for a $1,000,000 loan at 3.5%.. you might only qualify for a $975,000 loan at a higher rate.. $25,000 doesn’t seem like a lot when looking at a home selling for $1.3 million but it can change a number of items that affect obtaining a loan. I know of 5 transactions that have fallen through in recent days due to interest rate increases. Some fell out due to qualifying issues and some because buyers didn’t like the new payment.
People have short memories and have quickly forgotten the days when prices were high( 2005-2007) interest rates were at 7% or higher. If rates climb to 5% in the coming months that is still significantly better than when they were at 7%-8%. How the market responds this time will be interesting as we have seen so many all cash transactions in recent years. Real estate in the Beach Cities and especially Manhattan Beach has proved to be very resilient.
Manhattan Beach: Active Listings :
Manhattan Beach Sold Prices: October-November 2016:
Manhattan Beach: Percent of Sold Price to List Price October-November 2016
Manhattan Beach Days on Market 2016
Have questions? Please feel free to call or e-mail me.