Known for luring in elite homebuyers with its sandy beaches, spectacular sunsets and majestic Pacific views, Manhattan Beach embodies the standard of luxury seaside living. Several sports and entertainment celebrities like Vince Vaughn, Owen Wilson and Maria Sharapova, along with finance and technology professionals, have flocked to the area to purchase real estate. And because surf, sand and sunsets cost a premium, the median household income in Manhattan Beach is $139,259, with one-third earning $200,000 or more.
Luxury real estate is surging in the area, with Manhattan Beach securing the top spot for U.S. Zip Codes with the Highest Number of Closed Luxury Home Sales for $1M+ price points, according to the latest Luxury Market Report conducted by Coldwell Banker Previews International®. Sales in the $1M+ category are up nearly 41% since 2012, three times higher than the national average, hitting a record high average selling price of $2.58 million in the last three months of 2014.
So what is it about this South Bay town that has managed to attract high net worth homeowners from across the country?
In addition to Manhattan Beach’s coastal living perks, it’s the low housing inventory paired with a high demand that make it a highly sought after location for homebuyers. “There’s enough demand for the end product, and it will sell within 60 days,” says Lauren Forbes, an independent sales associate of Coldwell Banker Residential Brokerage in Manhattan Beach. Earlier this year, Forbes sold a 2,570-square-foot townhome one block from The Strand for $3.4 million. The seller had purchased the three-bedroom property in June 2012 for $2.3 million, netting a profit of $1.1 million minus what he spent on upgrades.
Overall, California was well represented in the Luxury Market Report, with San Francisco ranking No. 1 nationally for $1M+ home sales last year and San Jose coming in at No. 4. Los Angeles also ranked among the top five nationally for $1M+, $5M+ and $10M+ luxury home sales, while Beverly Hills ranked among the top five for U.S. cities and zip codes with the highest number of closed luxury home sales for $5M+ and $10M+. In Atherton and Santa Barbara, $10 million+ sales more than doubled in 2014.
Other California cities featured in the Top 20 report include Burlingame, Cupertino, Fremont, La Cañada Flintridge, La Jolla, La Quinta, Laguna Beach, Los Altos, Malibu, Menlo Park, Newport Beach, Newport Coast, Pacific Palisades, Saratoga, Sunnyvale, San Diego, Santa Ynez, Studio City and West Hollywood.
To review the full list of the Top 20 Best Performing U.S. Cities in Luxury Real Estate, download the latest Luxury Market Report at www.previewslmr.com.