It is a rare day when at least one article is not in the news regarding the mortgage meltdown, national foreclosure statistics and concern over the impending tsunami of foreclosures soon to flood the market.

We could blog for days on national statistics – but we’ll let others do that.  We are concentrated on the Beach Cities, specifically Manhattan Beach. We are seeing a local market that is long on buyers and short on sellers!  The frequent topic of discussions among Realtors is frustration at the low inventory of available houses for sale. We brought out two new listings in February—we received offers within days of our market launch.  Both generated multiple offers. One sold close to asking price, the other went overbid!

So what is going on? Has the local market passed the bottom?

It is quite clear that it has!

The Beach Cities residential properties have sold off dramatically in recent months. We see the effects of this fact every weekend at open houses.

We meet many qualified buyers actively searching for the right home but frustrated by the very limited inventory to choose from.

This is exactly the opposite situation that we were observing not many months ago when the market was long on sellers and short on real buyers.

Clearly the local market has passed the bottom of this cycle and, interestingly, has also just barely passed the balance point between buyers and sellers!

Yes, as strange as it may seem from the point of view only months ago, when we had a buyers market for years prior, we are now seeing the local market in the Beach Cities beginning to rotate ever so slightly back to a sellers’ market!

Available inventory has dropped to 3 months of sales activity or less. Much of this available inventory amounts to a “legacy” of overpriced or under conditioned, or both, properties that languish on the market.

Quality, well priced properties that are offered for sale now generate immediate interest and offers.  Proper presentation and pricing for value of properties offered is critical as buyers are still very focused on real value and will not press offer prices much above reasonable, “appraise-able” values.

This is why over priced or under conditioned properties continue to languish.

Consider the following market reports regarding residential properties from our local MLS system as of February 20, 2012:

Manhattan Beach:

There are 91 available and 72 in escrow; so about 1.26 available for every 1 in escrow.

Using an approximate 60 day escrow period Manhattan has about 2.5 months inventory available.

Hermosa Beach:

There are 48 available and 33 in escrow; so also about 1.45 available for every 1 in escrow.

Using an approximate 60 day escrow period Hermosa also has about 3 months inventory available.

Redondo Beach:

There are 144 available and 136 in escrow; so only 1.06 available for every 1 in escrow.

Using an approximate 60 day escrow period Redondo has only about 2 months inventory available.

In closing, this is the lowest level of available inventory that we’ve seen in the Beach Cities market in years. While parts of the rest of the country are still experiencing an excess of inventory, here, that phase of the market cycle is behind us.

If you’re on the fence about selling or buying… get off! There’s no time like the present.