Happy Summer! We’re now a few weeks into the Summer and if you’re like me, you’re wondering “When is summer going to start?” The feelings are two fold. Not only is the weather doing it’s best impression of June, but the South Bay real estate market isn’t doing a whole lot better. To put this to numbers, I searched sales under $2 million in the beach cities from Hollywood Riviera to Manhattan Beach. The period from January 1st to May 1st (4 months) shows 154 sales – Ave. price $1.08m; 2116 sq. feet; and 88 days on the market. Keep in mind this period covers US Tax incentives. From May 2nd to July 7th, in the same price and location range, there have been 90 sales – Ave. price $1.22m’; 2384 sq. feet; and 77 DOM. What do these numbers tell us? There has been a slight improvement in sales, but there is still a CA tax incentive available. The summer months are historically the best time to sell a house, but we’re not seeing the increases we should expect with current record low interest rates and incentives.
I know that sounds a bit pessimistic, but like my hopes for some summer sun, I too am hoping for better sales numbers. On the flip side, if you’re a buyer, this market continues to be a great opportunity to own real estate at the beach. As I mentioned earlier, we are seeing historically low interest rates and there are still many great houses to buy. To illustrate this, I want to point out 3005 Manhattan Avenue , Hermosa Beach 90254. Originally listed at $1.295m, it has been reduced to $1,049m; it is 1700 sq. feet on a 2450′ lot with some ocean views and a block to the beach. Yes, a block to the beach! Granted, it is on Manhattan Ave and you do have some morning traffic outside your door; but what other SFR can you find that close to the beach with 1700′, 2 car garage on a full lot? I think this one has potential.
That’s it for now. Pray for sun and surf and keep you’re eye on the market, things can change quickly!
