House the market? Scherb Homes Group - February 2025
Hello Scherb Homes Family,
We hope this message finds you well. We’ve had a busy and joyful start to the year, celebrating Kimberly’s dad’s 80th birthday, enjoying the Daddy-Daughter dance at Clover School, welcoming my mom from the East Coast, and participating in the Redondo Beach 10K with friends. However, the recent fires in and around Los Angeles have been concerning, and our thoughts are with those affected.
Key Takeaways:
• Market Resilience Amid Challenges: Despite recent wildfires, the South Bay housing market remains robust, with a median sold price of $1,846,000 in January 2025, reflecting a 10.1% increase from the previous year.
• Shifts in Buyer Sentiment: The Fannie Mae Home Purchase Sentiment Index® (HPSI) saw a slight uptick in January, rising 0.3 points to 73.4, indicating cautious optimism among consumers.
• Inventory Dynamics: The recent fires have led to an unprecedented demand for leases and homes in the South Bay, with open houses in Palos Verdes Estates and Redondo Beach seeing over 50 parties, many displaced by the fires.
Cliff’s Notes on Specific Markets:
Rolling Hills:
Median Price/Sq Ft (Active/Coming Soon): $1,163
Number of Homes: 9
Median List Price of Active Homes: $4,888,000
Average Days on Market (Median): 82
Homes That Have Seen a Price Reduction: 36%
1-Year Market Forecast: +0.5%
The Rolling Hills market is experiencing shorter days on the market compared to last year, with stable inventory and pricing. The recent fires have not significantly impacted this area.
Manhattan Beach:
Median Price/Sq Ft (Active/Coming Soon): $1,787
Number of Homes: 51
Median List Price: $5,099,000
Average Days on Market (Median): 22
Homes That Have Seen a Price Decrease: 32%
1-Year Market Forecast: -1.0%
Manhattan Beach has seen a significant shift due to the fires, with the median list price exceeding $5 million and average days on market decreasing by 45 days to just 22 since December. The price per square foot has reached an all-time high of $1,787. Leases are in high demand, with instances of price gouging in certain areas.
Hermosa Beach:
Median Price/Sq Ft (Active/Coming Soon): $1,636
Number of Homes: 28
Median List Price: $5,442,500
Average Days on Market (Median): 19
Homes That Have Seen a Price Decrease: 21%
1-Year Market Forecast: -1.0%
Similar to Manhattan Beach, Hermosa Beach is feeling the effects of those displaced by the fires. Average days on market dropped to just 19 days from 81 in December. Few homes are seeing price reductions. The full impact on the market is still unfolding.
Palos Verdes Estates:
Median Price/Sq Ft (Active/Coming Soon): $1,216
Number of Homes: 36
Median List Price: $4,597,500
Median Days on Market: 41
Homes That Have Seen a Price Decrease: 26%
1-Year Market Forecast: +0.5%
Palos Verdes Estates has started to feel the outer band of the demand wave coming from the fires. Days on market have shrunk since last December, and prices are on the rise. The median list price is near all-time highs for this city.
Hollywood Riviera:
Median Price/Sq Ft (Active/Coming Soon): $874
Number of Homes: 94
Median List Price: $1,799,500
Median Days on Market: 28
Homes That Have Seen a Price Decrease: 20%
1-Year Market Forecast: 2.30%
Hollywood Riviera has an increase in inventory, which could present opportunities for buyers before prices adjust upward due to fire-related demand shifts.
Redondo Beach:
Median Price/Sq Ft (Active/Coming Soon): $873
Number of Homes: 87
Median List Price: $1,799,000
Average Days on Market (Median): 30
Homes That Have Seen a Price Decrease: 20%
1-Year Market Forecast: 4.10%
Redondo Beach is experiencing a sharp rise in demand due to displaced families looking for housing stability. Schools in Redondo Beach are attracting more families, contributing to price increases and lower days on market.
Torrance:
Median Price/Sq Ft (Active/Coming Soon): $688
Number of Homes: 103
Median List Price: $999,900
Average Days on Market (Median): 29
Homes That Have Seen a Price Decrease: 30%
1-Year Market Forecast: 4.10%
Torrance remains balanced between buyers and sellers. More homes are taking longer to sell compared to last year.
San Pedro:
Median Price/Sq Ft (Active/Coming Soon): $582
Number of Homes: 74
Median List Price: $854,950
Median Days on Market: 33
Homes That Have Seen a Price Decrease: 39%
1-Year Market Forecast: -0.30%
San Pedro has lower inventory to start the year, and prices have slightly retracted since last year. Buyers may find more leverage here than in other South Bay cities.
If you’re thinking about selling your home or buying in the next several months, reach out for a detailed home selling report or current options coming to the market.
All the very best,
Cliff & The Scherb Homes Group
