Do you live in Manhattan Beach California – or thinking of moving there? There’s been a big – and surprising – change in home prices over the past year, and not in a way you might have expected.
Analyzing Manhattan Beach’s Real Estate Market: A 2024 Outlook
Introduction Welcome to our deep dive into the Manhattan Beach real estate market as we navigate through 2024. Situated in the heart of Southern California, Manhattan Beach continues to attract attention despite fluctuating economic conditions and interest rates. This analysis provides an up-to-date overview of the market’s current state, trends, and future outlook.
Current Market Analysis As of the first quarter of 2024, the real estate landscape in Manhattan Beach, ZIP code 90266, has experienced noticeable shifts. A significant rise in mortgage rates from 3% to almost 8% over the past year has redirected potential buyers towards more affordable options in neighboring areas such as Hermosa and Redondo Beaches, as well as more cost-effective sections of Manhattan Beach itself.
Sales Volume and Pricing Trends Recent data reflects a 10% decrease in sales volume from March 2023 to March 2024, totaling 270 transactions. This period also saw a corresponding 10% drop in median sales prices, bringing it to $2,787,500. Despite these changes, the price per square foot has seen a relatively stable decrease of just 2.2%, now at $1,296.
Days on Market An important metric to consider is the average days on market, which has increased by 40% to an average of 14 days. While this increase is significant, it is still favorable compared to the broader Southern California region, indicating that Manhattan Beach remains a relatively competitive market.
Market Health and Forecasts The Market Action Index, a key indicator of supply and demand balance, has shown an upward trend. This suggests growing demand as interest rates begin to stabilize and potentially decrease. Currently, the market is leaning towards sellers, but accurate pricing remains crucial for ensuring sales close near the asking price.
Future Outlook Inventory levels will play a critical role in shaping future pricing trends and overall market health. An increase in available properties could moderate price growth and shift the market dynamics towards a more balanced or even buyer-favored scenario.
Conclusion Despite economic uncertainties, the Manhattan Beach real estate market maintains its strength, largely driven by its desirability and persistent demand. Homeowners who invested at the peak prices of 2022 might consider holding onto their properties longer to capitalize on future appreciative returns as the market adapts to evolving economic conditions. Stakeholders are advised to stay informed through weekly updates and trend analyses to navigate this dynamic market effectively.
Stay Updated For real-time updates and in-depth analysis, subscribe to our weekly Manhattan Beach real estate market reports. Keep ahead of market changes and make well-informed decisions with our expert insights.
