February 24, 2015, Palos Verdes Estates, CA
Valmonte 2014 Real Estate in Review
After a gangbusters 2013 where we saw a 21% year-over-year increase in values (based on price/foot), the Valmonte real estate market cooled off a bit in 2014. Values continued to rise, but at a more modest, and much more sustainable 3.14% year-over-year increase. While the price increases slowed, the average Days on Market (DOM), an important measure of how long it takes a house to sell, dropped from 67 days in 2013 to 52 days in 2014 (this was the lowest average DOM since 2007). Looking at another key figure, the asking vs selling price comparison remained tight with houses selling at 97.74% of the asking price in 2014 compared to 98.26% in 2013. Compare this to 2009 when houses were selling at 93.52% of the asking price – a tough market for sellers. Finally, another sign of strong seller’s market is the fact that 11 of the 34 houses sold in 2014 sold at or above the asking price – another improvement from 2009 when not one house sold over asking. This continues suggests that there is fierce competition for well priced, move-in ready homes and sellers have their choice of buyers.
According to the S&P/Case-Shiller CA-Los Angeles Home Price Index, prices were up 5.1% year-over-year in the Los Angeles area in 2014. This suggests that our local Valmonte market is relatively on par with the general market in the greater Los Angeles area, albeit at a higher priced entry point to move in. This higher entry price could explain the slightly lower YOY appreciation.
Figure 1a. 3 year Valmonte SFR sales statistics
|Year||# Houses Sold||Average Price||Average Price/Foot||Year/Year % change||Ave. Days on Market|
2015 Is Off to a Slower Start
Since the new year, 6 homes have closed at a price per square foot of $607.91 with selling prices between $799k and $2.05m. The average days on market is 101 days – a considerable uptick from last year’s 52 days (one of these homes was a short sale which skew the numbers to the higher side). In addition to closed sales, there are 7 homes in back-up and 2 listed as pending. The majority of these homes were listed in the latter part of 2014, during which home sales are traditionally slower than the peak spring and summer months.
There are currently 7 Valmonte homes for sale as of today priced between $1.475m for a 1742 square foot traditional home on Via Nivel to 3,500 square foot traditional home on a corner lot on PV Drive North in the Eucalyptus grove priced just under $2.2m. The average list price/foot is $685/foot – a nice bump from last year’s $635/foot – but time will tell if these homes sell close to that price. Three of these listings have been on the market for 120 days or more, a good indication that they will likely need a considerable price reduction before buyers are ready to move in. In fact, their respective prices confirm this – all are priced considerably more than the average price per square foot of the other listings.
What’s on the horizon as we head into the traditionally busy selling season? If you are a seller, you’re in luck. Demand for Valmonte remains strong with many young families looking to enjoy the peaceful tree lined streets and top rated Palos Verdes Schools. In addition, financing continues to be favorable to buyers with low rates and banks willing to lend. If you are a buyer, I would qualify ASAP for a solid loan with a good mortgage banker and be ready to write a strong offer when your dream house is on the market. And, of course, whether you are a buyer or a seller, I would suggest you call me to help you reach your real estate goals while the market is hot!
For a custom price analysis of your home or for tips on buying or selling a home, please feel free to email directly at firstname.lastname@example.org. You can also visit my website at www.kyledanielsrealestate.com.
Thanks for reading!