As we head into the heart of summer, the Manhattan Beach luxury market continues to show remarkable strength. While many expected higher interest rates and economic uncertainty to slow activity, demand for prime coastal real estate remains resilient, particularly in Manhattan Beach's most sought-after neighborhoods.
A Strong First Half of 2026
The first half of 2026 has been defined by limited inventory, motivated buyers, and continued competition for well-priced homes. In the first quarter alone, Manhattan Beach recorded 99 closed single-family home sales, a significant increase from the approximately 50 sales seen in Q1 2023 and 60 sales in Q1 2024.
Perhaps even more notable is that over 30% of all Q1 sales occurred off market, reinforcing the importance of working with local agents who have access to opportunities that never reach the MLS.
Inventory Remains Tight
While inventory has improved slightly compared to the start of the year, supply remains well below historical norms, particularly for turnkey homes in premium locations.
Many homeowners continue to hold onto low-interest-rate mortgages secured during previous years, limiting the number of new listings coming to market. As a result, buyers are often competing for a relatively small pool of available homes.
This lack of inventory has been especially noticeable in the Tree Section, where demand continues to outpace supply.
Tree Section Demand Shows No Signs of Slowing
The Tree Section remains one of the most competitive neighborhoods in Manhattan Beach.
Throughout the spring, numerous homes sold well above their asking prices, with several transactions closing $300,000 to $450,000 over list price. Properties such as 605 Marine Avenue, 2100 Pine Avenue, and 844 14th Street attracted significant buyer interest, highlighting the continued appeal of the neighborhood's central location, larger lots, and proximity to award-winning schools.
Well-presented homes in desirable locations are still generating multiple offers and moving quickly.
The Strand Market: Watching the High End
The ultra-luxury Strand market remains one of the most fascinating segments to watch this year.
Interestingly, no single-family homes closed on the Manhattan Beach Strand during the first quarter of 2026, a trend that mirrors the prior year and is not necessarily indicative of weakening demand. Rather, it reflects the limited number of properties available for sale and the longer timelines often associated with ultra-luxury transactions.
Currently, there are approximately eight active single-family homes available on the Strand between Manhattan Beach and Hermosa Beach, with asking prices ranging from approximately $6.99 million to $25 million.
Of particular interest are three Strand properties currently listed between $24 million and $25 million. These listings will test whether the market can surpass the $24.5 million Strand sale record established in 2024.
Last year, a total of ten Strand single-family homes sold between Manhattan Beach and Hermosa Beach. Our team was proud to represent two of those transactions, including the highest sale in Hermosa Beach and the highest price-per-square-foot Strand sale in Manhattan Beach.
What About Interest Rates?
While interest rates remain higher than the historic lows seen several years ago, buyers have largely adjusted to the current environment.
Many luxury buyers are less rate-sensitive than traditional purchasers, and the continued strength of the stock market, private business ownership, and executive compensation packages has helped support demand in the upper price ranges.
More importantly, buyers continue to recognize that inventory, not interest rates, remains the biggest challenge in securing the right property.
What We Expect Through Labor Day
Looking ahead, we anticipate the Manhattan Beach luxury market will remain active throughout the summer months.
We expect:
• Continued competition for turnkey homes in the Tree Section and Sand Section
• Limited inventory to support pricing
• Strong demand from local move-up buyers and Westside relocations
• Increased activity in the luxury and ultra-luxury segments as buyers look to secure properties before year-end
• Off-market opportunities to remain a meaningful portion of overall sales activity
While headlines may focus on broader national trends, Manhattan Beach continues to operate within its own unique supply-and-demand dynamics. For buyers and sellers alike, local knowledge and access remain more important than ever.
As always, if you would like a personalized market update, information on off-market opportunities, or a valuation of your home, we would be happy to help.
Cheers,
Kevin, Brigitte & Natalie Pratt
Pratt Beach Properties
