Manhattan Beach Tree Section Updates

After a high-flying couple of years, gravity has come to the Tree Section real estate market. 

The number of homes sold in the Trees dropped to 90 for the full year, one-third lower than in 2021, and 22% below the 5-year average. The shortage of sales hit fast. It was a citywide concern.

Median prices are up, however, by 17% in the Trees, and by a modest 3% citywide. Upbeat median price data may conceal a true reversal in prices that is happening now. We see it on individual sales, rather than in full market data. 

Sellers in this market will be wise to do everything right. We hope to see the market stabilize in the first half of 2023. 

For daily updates on the local market, see MBconfidential.com.

While the real estate market seems to be slowing across the South Bay and SoCal, the Tree Section is one of the healthiest, busiest sub-markets in the region.

The simplest reason why is that the Tree Section has more of what the typical buyer wants: A 4-bedroom (or more) home with ample space for a family. The going rate for such homes now ranges from around $3.5 million to nearly $5 million for a resale, much more for new construction.

The number of sales in one year, while slower, still is not dipping as much as we see citywide. Well-prepared, well-priced homes are moving fairly quickly. Another good sign: Builders are still looking for land for new projects. We get these calls all the time. They’re betting on the future for the Tree Section.

For daily updates on the local market, see MBconfidential.com.

It’s rare to see the Tree Section’s median home price exceed that of the whole city of Manhattan Beach. The Tree Section median is now at $3.149M, about 1.2% higher than the citywide median. Prices also are up 12% year-over-year in the Trees.

We’re seeing these price trends amid fewer listings, and fewer sales. Buyers have to compete when a great family home in the Tree Section hits the market.

New construction homes of typical size are now trading in the $4-$5 million range, while larger homes with basements are hitting $6 million or more.

Buyers do face negative circumstances with higher interest rates, which limits affordability and could impact prices down the road. For now, data don’t show a downshift.

As the Spring real estate market goes into high gear, the Tree Section is hitting record totals. The median price for Tree Section homes is very close to $3 million now, barely below the citywide median price.

The pace of sales in the Tree Section is somewhat faster than the city as a whole, with 22% more homes sold in the past 12 months, compared to 9% more year-over-year for the whole city.

Buyers just can’t find homes easily, with only 4 Tree Section homes on market as of March 31. Off-market deals are common. Jumps in mortgage rates are adding to the challenges for buyers.

It’s a seller’s market in this popular suburban district, but nothing is easy or automatic. If you’re thinking of selling, consult EDGE for the best strategy to bring you top dollar.