Manhattan Beach Mira Costa Home Sales in 2009

Manhattan Beach Mira Costa Home Sales in 2009

The Mira Costa section of Manhattan Beach is one of several areas in the South Bay that have seen an increase in the number of single family homes sold in 2009 from 2008. Yet at the same time, the median sales price dropped by 20 percent from the previous year. What is interesting about this is that the median sales prices for the years 2006 through 2008 were within striking distance of each other and so the 20 percent drop in price more or less represents the decline in value from the peak year of 2006. The current median sales price is $1.35 M, up significantly from the beginning of the decade when it was $835 K. Given that there are only a handful of single family homes in escrow at this writing and that the current active inventory is just 10, this new year is off to a timid start.

One factor that appears to have impacted this area, like virtually every other area in the country, is the fallout of the credit market crash of 2007. This has manifested here in the Mira Costa area with a sharp drop in new development projects. In both 2007 and 2008, there were 17 to 18 new homes sold. Last year the number dropped to only eight. This could potentially explain a big chunk of the drop in median sales price.

There is a home on the market that may actually help current land values here if it sells at its adjusted list price of just over $7.9 M. Historically, there has only been one sale over $5 M in the Mira Costa area and this was back in June of 2006. The home has had two price drops thus far, but rumor has it there may be some movement soon. Deals like this can create interesting momentum for the market and maybe even a bump in demand for the area.

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