(3 minute read)
We are just past the half year mark and when it comes to South Bay real estate, I have some upbeat news for homeowners and hopeful buyers. To begin with, prices, inventory levels, and sales volume increased compared to last year at this time. For buyers the good news is interest rates are showing signs of stabilizing and the month’s supply of inventory has increased across most micro markets in the South Bay. However, there are still headwinds to more buyers entering the market including long running undersupply of homes for sale, especially at entry level priced homes, mortgage rates are still in the 6-7% range, and overall affordability levels . But with slowly increasing inventory, some sellers may be nudged to lower their prices, thus creating buying opportunities for those that can afford a home in our luxury market.
Highlights for the year so far:
Median Prices in the South Bay increased 8% to $1,350,000
The price/sqft increased 5.15% compared to a year earlier
The total number of closed sales is up 7% year-over-year
Months Supply increased to 2.9 months of supply
Cash buyers remain strong players in the market representing and estimated 40% of all sales
Sales over $5,000,000 increased 31% compared to the previous year
What’s Hot
The Hollywood Riviera housing market is on fire! The median price increased 26% compared to one year ago, price/sqft increased 8%, and sales volume is up 15%.
South Redondo price/sqft is up 7% to $986/ft 9much higher for single family homes).
Palos Verdes Estates median prices increased 12% and sales volume is up almost 19%.
Where are the Opportunities?
North Redondo prices remained nearly flat year-over-year and with more homes with modern amenities (compared to those of the 1950’s), it is a great time for first time buyers to get in with a lot less competition.
The east side of Palos Verdes has just over 5 months of supply and the average price/foot is under $800. There are many larger view homes available at solid prices in that micro market.
Summary
Don’t wait for the rate! It’s hard to ignore talk of interest rates, but there is no guarantee that rates are going to drop in the immediate future. While there is hope we will see some rate relief, there are many solid buys out there in many of the South Bay neighborhoods. Keep an eye on months supply and days on market. When those increase, it is time to sharpen your pencils and keep an eye out for low hanging fruit. If rates do drop, expect competition to increase and likely prices with it, as there are many buyers in the shadows praying for lower rates so they can try and time the market. Timing the market rarely works. Look for what you can afford and if the right opportunity presents itself, don’t be afraid to step into the ring.
