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Last June, I wrote a blog titled "Manhattan Beach Real Estate Sub-Market in Minor Correction." In the blog post I discussed Manhattan Beach's Sand Sec- tion walkstreets on the 100 and 200 blocks from 1st Street to 20th Street and how the sub-market was experiencing a minor correction. Now, 12 months later, it is safe to say this sub-market is in a full blown correction. Since the last blog, there has been less activity south of the pier and loads of activity between 15th and 20th Street. For this blog, I am going to focus deeper on the 15% correction between 15th and 20th and then try to bring some positive news from activ- ity south of the pier at the conclusion of this post. Past Sales to Present Day Even after years of price growth following the Great Recession, it seems that 2015 was the peak year for most of the prime 100 and 200 block walkstreet homes. Let's take a look… 2015 Sale 205 20th Street 4 bed, 4 bath, 4,747 sq. ft., built in 2014 Asking: $8,999,9000 Sold: $9,475,000 This is what I believe to be the peak sale between 15th and 20th street's 100 and 200 blocks. After only three days on market, this home sold for al- most $500k over its asking price. 2016 Sale 200 16th Street 4 bed, 5 bath, 4,150 sq. ft. built in 2015 Asking: $9,475,000 Sold: $9,000,000 This fabulously executed spec home did not get greedy and came out asking the same price as the record sale in the previous year. This home was Manhattan Beach Walkstreet Home Sub-Market Sees Prices Fall by 15% Richard Haynes Broker/Owner, Manhattan Pacific Realty 310.379.1724 richard@manhattanpacific.com DRE: 01779425 by Richard Haynes The above excerpt is from Richard's weekly South Bay real estate blog on June 6, 2019. To continue reading the blog and to subscribe visit www.manhattanpacificrealty.com/blog Advertisement about 600 sq. ft. smaller but was in a better location. Some people blamed the size, some blamed the timing of the listing during the winter months, but ultimately, this weaker sale was a sign of things to come for the sub-market. 2017 Sale 132 16th Street 4 bed, 5 bath, 4,047 sq. ft., built in 2013 Asking: $10,499,000 Sold: $7,600,000 This home was the "eye-opener" sale as referenced in my blog post last year. Based on the previous two years sales, this home came to market way overpriced in 2016 at $10.5 million and did not make a deal until 2018, closing at $7.6 million. That is about a $2.9 million discount in price! Ouch… This was a shock to the market with 200 16th Street selling for $9 million a year prior. Since this sale, the market has bounced back slightly, but really never recovered to prices seen in 2015 and 2016. 2018 Sales 208 20th Street 5 bed, 6 bath, 5,673 sq. ft., built in 2010 Asking: $9,250,000 Sold: $8,700,000 A lot more sales activity ensured in 2018 which really furthered the story of the walkstreet price correction. This 20th Street sale helped prove that the $7.6 million may have been more of a capitula- tion by the Seller at the time. 130 19th Street 4 bed, 5 bath, 4,200 sq. ft., built in 2017 Asking: $8,599,000 Sold: $8,085,000 130 19th Street came to the market in October of 2017 asking $9.25 million. After struggling to sell for the longest time, it finally closed for $8.085 million, almost a $1 million drop from the $9 million price tag for a spec sale seen just two years earlier. 222 17th Street 5 bed, 4 bath, 4,279 sq. ft., built in 2009 Asking: $7,595,000 Sold: $6,850,000 Lastly, 222 17th Street was a "newer" home with a very funky floor plan. The home first came on the market asking $7.595 million. It was then taken off the market, and then re-listed for $6.995 million. After a total of 15 months on the market, a deal was finally made at $6.85 million, which basically put walkstreet Sellers on notice that home listings were officially a Buyer's market. 2019 Sale 212 16th Street 4 bed, 5 bath, 4,100 sq. ft., built in 2019 Asking: $8,795,000 Sold: $8,395,000 And finally just this year, another well-executed spec home that was better than 130 19th Street came to market. It sold for a slight premium to the 19th Street spec at $8,395,000. Whew! Thank goodness. Peak 2015 to Trough is Ugly So if we take the high sale in 2015 of $9.475 million vs. the latest spec sale this year at $8.395 million, that would equal over a 10% decline in pricing for this walkstreet sub-market. No doubt a solid price decline that I am sure not many Sellers would have anticipated back in 2015. Furthermore, one could take the $8.085 million sale from 2018 vs. the peak sales price in 2015 which gets you to a big 15% decline in price. And even then, it still might get worse before it gets better.