Let’s face it, if you are a buyer looking to move to Palos Verdes Estates, and you don’t have over $2 million, it’s a tough market out there. The same goes for buyers in Manhattan Beach, Hermosa Beach, and increasingly Redondo Beach. As for the beach cities, there are at least several lower priced options including condos and town homes that will get you location, views, and that coveted beach zip code many buyers are looking for (may I recommend 446 Palos Verdes Blvd) But if you don’t want to hear your neighbor’s toilet flush or their phone ring, buyers looking to “the Hill” are facing steep competition at the lower entry points to each neighborhood.
Taken as a whole, inventory is down compared to a year ago throughout the South Bay and Palos Verdes. On the other hand prices are up over 4% in the general area and over 10% in the most popular neighborhoods. If you are shopping at the entry point to any neighborhood, the competition is stiff, especially under $1.5m. However, there is an interesting trend recently reported by CoreLogic that we are seeing – rising inventory and fewer sales in the higher price ranges. To illustrate this, look at Manhattan Beach where list prices are averaging $4.3m. Compared to a year ago, available inventory (and months supply) has nearly doubled from 61 homes to 115 homes. On the other hand, the number of closed sales remains steady around 31/month. In Valmonte, where sold homes averaged $1.67m (3 month rolling average), inventory is down over 40% from a year ago and closed sales are up on a monthly basis. Hmmnnn, are we starting to see signs of a bubble on the high end?
2517 Via la Selva in Valmonte – ask $1,999,000, SOLD $2,067,000
Fortunately there is some hope on the horizon for those eager buyers as summer approaches. In the past Valmonte has averaged around 12-13 available homes during the summer months . This summer bump is true for the beach cities as well. But as prices climb, the buyer pool tends to shrink and homes sit on the market longer. As a result, prices drop, typically as we head into the holidays and unsold inventory sits. Is this what we have in store for our market? Only time will tell, but for now, my buyers are still looking for that perfect Valmonte home for their family and there isn’t much available for them.
If you are thinking of buying or selling a home, please contact Kyle Daniels, Ericson Beach Real Estate, 310.483.3998 or firstname.lastname@example.org for a confidential consultation.