Juliet Zuckerwise
Business Manager
Another year of real estate activity in Manhattan Beach has officially come to a close, and 2025 marked record-setting prices paired with a market that gradually lost momentum. While buyer demand spiked home values to new highs, the pace of sales slowed notably as the year progressed, raising speculation about what lies ahead for the new year.
“The median home price jumped 10% in 2025, landing at a record setting $3.325M,” MB Confidential reported in its year-end market update from Jan. 2, 2026. The figure surpasses the previous peak of $3.137 million set in 2022 and reflects a dramatic influx in property values for the beach community. The report also notes that the price level is “more than double the median back in 2008,” demonstrating that the change in market is drastic on a yearly basis.
Students at Mira Costa express mixed reactions toward the record-breaking news. Sophomore Shayne Madison said that she was not surprised by the increase, explaining that Manhattan Beach has been an incredibly desirable coastal community to live in. “For families just looking for a residence close to the coast, the rising prices could cause interest rates to purchase houses around [Manhattan Beach] to decrease significantly,” Madison said.
However, Madison added that the price surge raises concerns about affordability, noting that it makes her “concerned for these young families trying to start up a life of their own in this beautiful but costly town.”
The report also cautioned against assuming that the prices will continue to rise indefinitely. MB Confidential said that “it seems like only yesterday, when there was an 11% dip in median prices, from 2022 to 2023.” The decrease temporarily removed some of the gains from the pandemic. The data from the pandemic era underscores how fast market conditions can shift.
Although the prices reached historical highs, sales volume reported differently. MB Confidential described the fourth quarter of 2025 as “the slowest of the year,” continuing the pattern of declining sales after a hectic start. The Manhattan Beach real estate market traditionally follows a seasonal pattern with quiet periods during the winter and busier periods in the spring and summer. However, 2025 deviated from that recurring pattern.
Another Costa sophomore, Camie Cho, said she was shocked by the record median price. “I’m sure these costs affected the families looking for homes because it is definitely a large amount of money,” Cho said. She also explained that while select sellers may benefit financially, others could struggle due to the overall cost of living. “This makes me feel sad for people looking for homes because inflation has definitely taken a toll on many,” Cho added.
MB Confidential also added that, “due to the market impact of the tragic LA County wildfires, 2025 saw an uncommonly, wildly busy January and first quarter.” The inventory that was received due to the fires would typically appear later in the year, in comparison with 2025 which had the sudden surge in demand. The first quarter results ended with 87 closed sales and was described as being “among the busiest Q1s ever seen,” by MB Confidential.
“As the year unfolded after, no other quarter of 2025 matched Q1 for closed sales,” the report noted. “This simply never happens.” Instead, every subsequent quarter totalled fewer sales than the previous – a reversal growth pattern seen in 2024.
Inventory remained secure at the year’s closing, continuing the support for high prices. As of Dec. 31, MB Confidential reported just 33 active listings citywide, including 12 townhomes as well as 21 single-family homes.
Manhattan Beach closed 2025 with record home prices, but also clear indications of deceleration. As MB Confidential concluded, the challenge moving forward and into the new year is the question of how long the new highest-ever median price will remain or if it will keep increasing.
Buyers and sellers alike will be questioning and watching the market closely as 2026 unfolds.
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