So far, despite all the political turmoil and buckets of rain we’ve received in Southern California, the real estate market in the South Bay and Palos Verdes is off to a solid start. One important thing to note – there is a disparity in the market at the $1.5 million threshold. Why does this matter? If you are trying to sell a home over $1.5 million, you’re likely going to need a little more patience. On the other hand, if you are trying to buy a home under $1.5 million, you better be ready for battle, especially if it’s under $900k. Homes priced under $1.5m are seeing multiple offers and selling in fewer days on the market (about a month to be exact); while homes priced above that are taking nearly 50% longer to sell due to nearly double the inventory. Comparatively speaking, it’s still a great market. Prices are up across the area 41% (and in some areas as much as 50% higher) from market lows in 2012. Here’s how things look compared to a year ago:
- Overall prices are up nearly 13%, led mostly by homes priced under $1.5m
- Homes priced over $1.5m are down 13% but this segment represents only 5% of the total market volume
- Inventory is down 9% from last year for homes under $1.5m and up 18% over $1.5m
- There is less than 2 months supply on the market for homes under $1.5m and nearly 4 months supply for homes priced over $1.5m
Keep in mind, these numbers reflect data from the MLS through January 31, 2017, and traditionally inventory and sales volume peaks in July (or at least it has consistently for the last 9 years). I anticipate inventory and sales volume to continue to improve as we inch closer to summer, with prices remaining in check at the higher price points and fierce competition in the lower priced areas.
If you would like to discuss the market in greater detail, feel free to contact us directly at 310.483.3998 or visit southbaymarketreport.com for a free home valuation report. Stay dry!