Is it really fall? It’s hard to believe amidst 85 degree weather that we’re getting ready for the days to slow down, stocking up on candy for the trick-or-treaters, and thinking about the coming holidays. But like the weather, the real estate values in Valmonte are headed towards all-time highs. The average sales price through September 30th is a record $1.546m – up over 14% from 2014. On top of that, there have already been 45 sales through September 30th this year, compared to 34 homes sold in all of 2014. Historically speaking, on a price/foot basic, prices have rallied 28% from market lows set in 2012 ($509/foot); however, the average price/foot is off 11% from market highs set in 2005 ($729/foot) and 2006 ($728/foot).
How long does it take for a house to sell? Average days on market (DOM) for sold homes is trending downward to 42 days for listings sold in the last three months. This is down from an average of 102 DOM in January. This decrease in DOM can be attributed to seasonal averages. However, compared to 2014, the DOM has actually increased. The longer days on market can be attributed to higher overall prices for the area as well as more available inventory. Closing prices compared to asking price have returned to 98% of asking, an indicator that on average, houses are being marketed at fair prices. Year over year this number has improved from 94%.
What’s ahead? Locally, demand remains steady, and as high prices in the South Bay beach cities continue to price out buyers, Palos Verdes Estates and surrounding areas can expect to see continued buyer interest. What are the potential challenges? Price growth in the short term may face headwinds with rising mortgage interest rates and a limited number of qualified buyers as prices continue to climb while wages and job growth wane. The result – we’ll likely see a leveling off in prices until more qualified buyers enter the market.
Valmonte Market Statistics
|# of Homes||Price Range||Ave $/foot||Average price|
|Active listings||10||$1.338m – $2.295m||$770/foot||$1,714,200|
|In Escrow||3||$1.475m – $1.699m||$620/foot||$1,574,333|
|Sold||45||$799k – $2.625m||$656/foot||$1,546,067|