The year is in full swing and despite some wild weather, the sun shines brightly and the local mountains are full of snow. I want to give a special shout out to our local cities for their diligence and prompt responses to the downed trees and debris as the result of the recent wind and rain storms that recently soaked us.
It’s hard to ignore the headlines, but by now I assume that if you are reading this, you are probably well aware that 2022 brought a big shift in the real estate market. After a double digit boost to real estate values from mid-2020 until early 2022, the era of cheap money came to an end, and as a result so did soaring real estate price growth. We are left with mortgage rates in the 5-6% range, a slowdown in sales volume, and plateauing prices. Despite all the predictions for a recession and falling home values, I am happy to say the real estate market is still standing strong. While many buyers were hoping for a great entry opportunity after 2 years of nerve wracking bidding wars, they ended up with reluctant sellers and an event tighter supply of homes.
Here in Palos Verdes, the real estate market is once again off to a solid start of the new year. Current inventory levels are running about 1/3 of pre pandemic averages and buyers have largely absorbed the reality that the days of 3% mortgages will be best remembered in history books. Because of our unique suburban coastal location, excellent schools, and safe and quiet neighborhoods, the Hill continues to see high demand from buyers across all age groups. So long as inventory remains well below normal levels, we can expect prices to remain stable and many homes will continue to sell with multiple offers and prices closing above the list price. Once interest rates settle, you can expect more buyers to return to the market and prices will once again begin their march upward.
Current Inventory in Palos Verdes
Palos Verdes Estates – 18 | Median Price $4.45M (1.6 MOS)
Rancho Palos Verdes ⬆️ – 41 (1.6 MOS)
Rolling Hills – 8 ⬆️ | Median Price $4.775M (5.3 MOS)
Rolling Hills Estates – 14 | Median Price $2.2M (2.5 MOS)
For now, enjoy the green hills and cool breeze, and I will see you in the neighborhood!