Manhattan Beach is a beautiful coastal town that is considered one of California's most desirable regions. The suburban city is characterized by affluent neighborhoods, stunning beaches, and excellent recreational opportunities. This coastal city boasts over two miles of coastline and 115 acres of beautiful sandy beaches. In addition, Manhattan Beach is home to several parks, including Live Oak Park, Polliwog Park, and Marine Ave Park. All these parks offer residents a variety of recreational amenities such as picnic areas, playgrounds, and walking trails.
This city also has an amazing downtown area that offers a variety of world-class dining options, entertainment venues, and shopping centers. This area is also home to several luxury hotels and resorts, including Shade Hotel Manhattan Beach and Beach House. Manhattan Beach's real estate market is bustling, thanks to the city's favorable lifestyle. The following is an in-depth look at the Manhattan Beach real estate market in 2023.
Home values are increasing
The real estate market in Manhattan Beach remains one of the most coveted in Los Angeles County. One of the key indicators of the health of a real estate market is home values. In Manhattan Beach, home values have been increasing steadily over the past few years. Home values in Manhattan Beach will also likely continue increasing in the foreseeable future. While there may be some short-term fluctuations due to changes in the economy or shifts in the local real estate market, the overall trend is poised to be one of growth.
Interest rates are rising
The U.S. recorded historically low-interest rates in 2020, largely due to efforts of the Federal Reserve to stimulate the economy. However, the Federal Reserve began to gradually increase interest rates from 2021 until now, with the Federal Reserve announcing the seventh consecutive increase in recent months. While it is highly improbable that we will see such low rates in the future, interest rates are still expected to remain low. This means borrowing money to buy a home will remain affordable. Therefore, demand for real estate will remain strong, and prices will continue to rise.
Investing indicators favor landlords
Manhattan Beach is a highly desirable place to live, which makes it an attractive location for real estate investors. As investors continue to buy existing properties, the supply decreases, leading to an increase in rental rates. There are also low vacancy rates, with vacancy rates for rental properties being 3.9%. This means higher demand for existing rental properties and hence high rental rates.
There will be a positive net population migration
Manhattan Beach had a population of 35,135 on April 1, 2010, and 35,506 on April 1, 2020. This shows a positive net migration of 371 people during the 2010-2020 period. The positive net population migration trend can be attributed to several factors, such as its proximity to downtown Los Angeles, excellent schools, and robust local economy. Being a desirable region, Manhattan Beach will continue to attract residents.
Los Angeles County housing market trends 2023
In addition to Manhattan Beach, Los Angeles County is home to many affluent cities, including Santa Clarita, Beverly Hills, and Century City. These cities are often a draw to high-net-worth individuals, which increases demand for homes and reduces inventory leading to high home values. The median home value in Los Angeles County was $795,000 in 2021, when interest rates were historically low. Today, the values are higher and are expected to continue rising as demand increases.
How COVID-19 affected Manhattan Beach real estate market
The COVID-19 pandemic affected real estate markets around the country. However, the real estate market of Manhattan Beach was an exception, as it recorded $2.563 billion in real estate transactions despite the lockdowns. Most of these transactions occurred in the second half of 2020 when interest rates were very low. The COVID-19 pandemic also affected the way real estate deals were completed. Virtual tours of properties became common, which also helped increase activity in the market.
Manhattan Beach foreclosure statistics 2023
California performs significantly well in terms of foreclosures. As of March 2023, California ranked 18th for states with the largest number of foreclosures, with a rate of one foreclosure for every 4,244 homes. Most of these foreclosures happen in large cities like Los Angeles and San Francisco, with upscale real estate markets like Manhattan Beach being the least susceptible to foreclosure.
The low number of foreclosures in upscale communities like Manhattan Beach can be attributed to several things. First, upscale communities mostly attract high-income families that can buy a house in cash or have the financial means to make their mortgage payments on time. Additionally, there is the availability of loan modifications and other assistance programs for homeowners who are struggling to make payments.
Manhattan Beach median home prices 2023
The median home value in Manhattan Beach was $3.060 million in March 2023. While this may seem like a high value, it's actually a 3% reduction from the September 2022 peak value of $3.166 million. However, the March 2023 figure was a 13% increase from March 2021.
Manhattan Beach real estate market: should you invest?
Manhattan Beach's real estate market is often compared to other luxury coastal cities like Los Angeles, Malibu, and San Diego. This is because Manhattan Beach has a high quality of life, attractive beaches, and proximity to Los Angeles. This means that property values are high. As a result, it is a very attractive market worth your investment. Manhattan Beach also has a strong economy, as it has diverse industries and low unemployment rates. This translates to a great demand for housing.
Expert tips for buying a home in Manhattan Beach
The following tricks will help you make an informed decision when purchasing your home in Manhattan Beach:
-
Work with a knowledgeable and experienced local real estate agent
-
Think about the home's proximity to schools, parks, and other amenities, as well as the quality of the neighborhood
-
Look beyond aesthetics and consider the property's structural integrity, age, and potential maintenance issues
-
Know your needs and wants and ensure you have the financial flexibility to buy
-
Do your research, as the price is not always indicative of quality
-
Be patient with the search process
Buy your next beach home in Manhattan Beach
Are you ready to buy a home in Manhattan Beach? Jen Caskey Group is a team of Manhattan Beach realtors with 30 years of experience in the local luxury real estate market. In addition to homebuying, they will help you determine your current property value, craft a competitive offer, and negotiate a contract. Contact Jen Caskey Group today to inquire about Manhattan beach homes for sale.
